Air Transport

UK airports operator BAA has received and rejected a pre-conditional proposal from Spanish infrastructure firm Grupo Ferrovial and unidentified consortium partners to take over the company.

Ferrovial has put forward a cash offer, says BAA, of 810p ($14.21) per share but has stated a willingness to increase this by a small amount, if BAA is willing to recommend the offer and grant limited due diligence access.

BAA’s board, however, has swiftly turned down the proposal. The company says it made “no hesitation” in rejecting the proposal, adding that it “does not begin to reflect the true value” of BAA’s airport assets.

“On the basis of this proposal the board does not believe it is in shareholders’ interests for it to enter into discussions with Ferrovial,” says BAA.

BAA chairman Marcus Agius says the company, which manages seven UK airports including London Heathrow and Gatwick, has focused its attention on the value of its assets since Ferrovial indicated last month that it might attempt a BAA takeover.