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BAA accepts takeover bid
Airports operator BAA has agreed to support a takeover bid by Spanish building group Ferrovial after weeks of negotiations.
BAA, which operates seven UK airports including Heathrow, Gatwick and Stansted, had resisted being bought out since it was first approached by Ferrovial in February, but late last night it decided to accept an offer of 950.25 pence a share, valuing the business at £10bn.
A consortium led by US-based investment house Goldman Sachs was also bidding, but it is believed Ferrovial was preferred because of the logistic sense of it combining its assets with those of BAA.
The Goldman Sachs team has not ruled out fighting back with a better offer, but Ferrovial snapped up 14% of shares in BAA today, making it more difficult for rival bidders.
BAA has attracted the takeover bids despite the possibility of it becoming the subject of a competition probe by the Office of Fair Trading.
Last month the OFT said it might investigate whether BAA’s dominance as an airport operator was against the public interest.
Bmi, which is BAA’s second largest customer, said regulators should use this opportunity to review passenger charges.
Nigel Turner, chief executive officer, said: “If a premium is being paid, as some commentators have suggested, we must have safeguards to ensure passengers do not end up paying for that premium through higher charges.
“On the contrary, we would hope to see a reduction in charges, given the operational efficiencies that Ferrovial believes it can bring.”
“Regulators must take a rigid stand and use any change in ownership as an opportunity to review some critical questions about the strategic importance of the UK’s airports.
“Effective monopolies in London and in Scotland are not healthy for the consumer and airlines alike. Divestment of interests in Scottish airports is long overdue. Now must be the time to look at all of these ownership issues.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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