BAA woos shareholders with dividend proposals

Results of survey
A	36.6 %
B	6.1 %
C	28.0 %
D	11.0 %
E	8.5 %
F	9.8 %

Home

John Rimmer

26-May-2006

Print Article

E-Mail Article

E-Mail Author

As Grupo Ferrovial continues its bid to purchase the UK airports group, BAA is hoping a 40% increase in dividend per share in 2006/7 will encourage its shareholders not to sell

BAA's fight to fend off Grupo Ferrovial's hostile bid for the airports group has intensified with the company's pledge to deliver a 40% increase in dividend per share in 2006/7. In a circular sent to its shareholders yesterday, BAA also promised a £750m ($1.42bn) capital return by means of a tender offer to be made as soon as any bids to buy the company lapse. The group also restated the four reasons it believes Ferrovial's 810p per-share bid does not match BAA's true value (RavenFox.com May 4).

BAA chairman Marcus Agius said yesterday: "Over the last 15 weeks the Ferrovial consortium has failed to offer BAA shareholders anything which approaches the true value of their company. We are confident about our company's future—that's why we are returning capital and increasing the dividend. We remain determined that this company will not be sold to the Ferrovial consortium or any other bidder on the cheap."

CEO Mike Clasper added: "We have today set out a very clear view of BAA's value. I am very confident that we can deliver. Our shareholders should stay with BAA."

Bookmark This Article

• • • •

Delicious Digg StumbleUpon Facebook