BAA to recommend Ferrovial offer

Gavin Lipsith

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The UK airport group is to recommend the Spanish bid to shareholders while leaving the Goldman Sachs consortium the opportunity to place an improved bid by June 16

UK airport group BAA is to recommend that shareholders accept a revised takeover bid from Spanish consortium Grupo Ferrovial that is worth about £10bn ($18.8bn), according to news agency AFX. Full details of the deal are expected shortly.

In a statement to the London Stock Exchange this morning the group also said that it had extended the deadline for a raised bid from Ferrovial to June 12, while offering the rival Goldman Sachs-led consortium an opportunity to make a firm offer for BAA by June 16, one week later than previously planned.

According to BBC reports, BAA has agreed to pay Ferrovial a break fee if it turns away from the deal, meaning that any offer from the Goldman Sachs consortium would have to cover the charge. Goldman Sachs' current offer is understood to be £9.40 ($17.6) a share plus a special dividend of £0.1525 ($0.29) a share. Ferrovial's recommended offer is understood to be £9.50 ($17.8) a share.