BAA agrees to £10.3 billion Ferrovial offer

BAA agrees to £10.3 billion Ferrovial offer

	Published : Wed, 07 Jun 2006 11:45 By : Phil Bateman Print this Story

LONDON - Airports operator BAA has accepted a £10.3 billion takeover bid from Spanish construction firm Ferrovial yesterday, thus putting an end to the intense speculation over its future. Reports say that the tense meeting lasted well into Monday night before a firm decision was reached.

BAA decided to go with Ferrovial despite a higher bid from Wall Street investment bank Goldman Sachs. The latter has until Friday to decide if it wants to up its bid again. After this announcement, Goldman said that BAA shareholders should not take any decision since it was reviewing its position.

"BAA is a great company and during the past week we have made every effort to ensure that its true value is properly recognized," said the chairman, Marcus Agius. The company said that the 950.25 pence a share bid was just about the right offer for it.

Ferrovial chairman Rafael del Pino assured investors that the company was "committed to cooperating with current management and providing ongoing investment in infrastructure." BAA operates Heathrow, Gatwick and Stansted airports and a proposal to include a third runway at Heathrow is expected to get Ferrovial's backing.

Willie Walsh, chief executive of British Airways said that Ferrovial had indicated that it would continue to develop the airport even after the completion of Terminal 5 in 2008. “I have no doubt Ferrovial will be committed to investing in Heathrow. The conversations I have had with them indicated to me that they were serious investors interested in the long term," Mr Walsh was quoted as saying on The Times at the International Air Transport Association (IATA) conference in Paris. “Given the premium they are paying, I am convinced they will be very focused on developing Heathrow and adding to its capacity. I am more optimistic now that the third runway will happen sooner rather than later.”