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BAA ends Goldman talks as Ferrovial raises stakeBAA ends Goldman talks as Ferrovial raises stake
Lorna Strickland
8-Jun-2006
BAA has ended its talks with the Goldman Sachs-led consortium
BAA and Goldman Sachs ended discussions over the US bank's proposed takeover bid this morning, prompting Grupo Ferrovial to continue its purchase of BAA shares. At midday BST today Ferrovial had moved closer to a full £10.3bn ($18.9bn) takeover as it increased its ownership of the UK airports operator to about 26%. Analysts believe Ferrovial's increased ownership is enough to block any rival bid.But Goldman Sachs could still be in a position to continue its plans for ownership if it approaches shareholders directly. Its original offer was marginally higher than that of Ferrovial.
Ferrovial has now negotiated a £115.5m ($219m) break fee if BAA switches its recommendation back to Goldman Sachs.
Meanwhile reports in UK newspaper The Independent suggest that BAA CEO Mike Clasper could be in line for a £3m ($5.67m) pay-off if Ferrovial completes its buy-out. Clasper's shares in BAA are worth £2.4m ($4.5m) and The Independent's sources claim that Clasper would receive £640,000 ($1.2m) in severance pay.
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