Ferrovial brings Macquarie Bank on board in bid for BAA |
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Published
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Wed, 29 Mar 2006 15:00
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LONDON: Spain's construction firm Grupo Ferrovial SA revealed Wednesday it has engaged Australia's Macquarie Bank as joint financial adviser for its proposed takeover bid for Britain’s airports operator BAA.
Ferrovial said under the deal, Macquarie Airports (MAp), the listed airport investment fund managed by Macquarie Bank, has been given the option to buy Ferrovial's stakes in Sydney Airport and Bristol Airport, subject to the takeover of BAA going ahead. Ferrovial has some 20.9 per cent holding in Sydney airport, which will be offered to Macquarie at about 1 billion Australian dollars, while its 50 per cent stake in Bristol Airport will be priced around 106 million pounds.
The deal virtually removes a potential competitor in the bid for BAA.
Sydney-based Macquarie, which is Australia's largest investment bank, had been considering making its own bid for BAA. It is said to have had talks with private equity group Blackstone and the Ontario Teachers' Pension Plan about teaming for the offer, according to news reports.
BAA had rejected the 8.75-billion-pound or 810-pence-a-share offer from Ferrovial, saying the approach undervalued its business.
Analysts now feel the consortium led by Ferrovial would improve its bid. The consortium comprises, besides Ferrovial, Canadian investment fund Caisse de depot et placement du Quebec and Singapore’s GIC Special Investments. Citigroup is an advisor to the consortium.
Ferrovial shares added 1.25 euro or 1.95 per cent to reach 65.50 euros.
London-based BAA's shares went up 3.5 pence or 0.4 per cent to 830.5 pence.
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