BAA rejects Spanish buyout

Emily Pacey

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Spanish company Ferrovial's cash offer "does not begin to reflect true value" of BAA

UK airports group BAA has declined a takeover offer from Spanish company Grupo Ferrovial SA. The BAA board concluded that the cash offer of 810 pence per share undervalued the company's assets. Ferrovial's offer was lower than BAA's closing price of 839p on March 16.

BAA said in a statement: "The board met this morning and has no hesitation in rejecting this proposal, which does not begin to reflect the true value of BAA's unique portfolio of airport assets."

However, BAA also said that Ferrovial may be willing to increase its offer "by a small increment" in return for BAA granting access to its accounts.

Other potential suitors include the Singapore government, Canadian fund manager Caisse de dépôt et placement du Québec and UK fund manager Star Capital. Macquarie Airports, the airports division of Macquarie bank, has been reported as a possible takeover partner, but the company has so far refused to comment.