BAA rejects higher Ferrovial bid

Emily Pacey

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The Airport Development and Investment Ltd consortium increased its bid for BAA to 900 pence per share, but the airport group's board is unimpressed

Spanish construction firm Grupo Ferrovial, which is seeking to buy BAA through its consortium Airport Development and Investment Ltd, has raised its offer from 810 to 900 pence per share.
 
However, BAA has rejected the £9.732bn ($18.3bn) offer. BAA wrote to shareholders last week, valuing the company's shares at over 940 pence each and setting out proposals for a £750m ($1.4bn) capital return to shareholders if any bids for the company lapse.

In response to the new offer, BAA chairman Marcus Agius said: "We have evaluated the Ferrovial consortium's revised offer but the board is clear that it still falls well short of the true value of the company, which we explained to shareholders in our circular last week. The board is also clear that the revised offer does not reflect a suitable premium for control of BAA's unique assets."

He added: "I believe that BAA has an exceptional future under [BAA chief executive] Mike Clasper and his team, who are committed to delivering outstanding shareholder value. We remain determined that this company, with its unique assets, will not be sold to the Ferrovial consortium or any other bidder on the cheap."