Macquarie Bank now eyes being part of panel bidding for BAA

Macquarie Bank now eyes being part of panel bidding for BAA

	Published : Mon, 27 Feb 2006 10:05 By : Amy Watts Print this Story

LONDON: Australia's Macquarie Bank is said to be aligning with Spanish construction firm Grupo Ferrovial SA in the hostile bid for Britain's airport operator BAA Plc., according to unconfirmed reports.

BAA owns seven airports in Britain, including London's Heathrow, Gatwick and Stansted.

Macquarie and Ferrovial are already allies in other projects, including operating Bristol international airport. It had till recently been in an acrimonious multi billion pound unsolicited bid for London Stock Exchange and had withdrawn.

Ferrovial had publicly said that it is considering offering a cash proposal for BAA through a consortium it did not name. It is rumoured that Singapore government, Canadian fund Caisse de despot et placement du Quebec and Britain's own Star Capital were tipped to be partners in the consortium. Macquarie Airports, an investment fund of Macquarie Bank, was also considered to be included in the consortium.

A bank spokesperson declined to comment on the reports. The bank had earlier clarified that it had not been approached to become a member of any consortium led by Ferrovial.

Some sources put the bid value to be as high as 15 billion pounds.

Meanwhile, Britain's Civil Aviation Authority has told potential bidders to take into account the huge investment requirements while pursuing acquisition of BAA. It said it is not likely to allow any increase in caps on airport charges, which the bidder could use to generate cash and pay back debts. Huge amounts are projected as required for the modernisation of Heathrow, Gatwick and Stansted airports in coming years.

The regulator also indicated it can refer any case to the Competition Commission in case it finds that to be not in the public interest.