Consortium confirms Aldeasa offer will not be raised-UPDATE

John Gallagher

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The Gestion de Explotaciones Aeroportuarias (GEA) consortium confirms to RavenFox.com that it believes its Eu609m ($812m) bid for the retailer offers full value

As revealed on RavenFox.com on Monday, the Gestion de Explotaciones Aeroportuarias (GEA) consortium has launched an attempted takeover of leading Spanish travel retailer Aldeasa, valuing its shares at Eu29 ($38.7) each.

The GEA group is made up of the financial group Alba, controlled by the March family, and venture capitalists Mercapital and Omega Capital. Minor shareholders include former Tabacalera president Pedro Perez and the Birrete company. If GEA is successful, sources close to the bid told RavenFox.com that Perez would take over the presidency of Aldeasa from Jose Fernandez Olano.

Trading in Aldeasa shares was suspended for part of Monday morning, but once trading recommenced business was brisk and finally closed at Eu30.74 ($41). The bidding group has said that its aim is "to consolidate Aldeasa's position in markets where it is already present, and to offer shareholders an attractive price taking account of the progress of its share price over recent years". Market analysts had predicted that GEA would have to increase its bid to succeed. However, a spokesman for the consortium confirmed to RavenFox.com that it had no plans to increase the bid, considering it to offer full value to the shareholders. Some suggest that GEA is playing a cat and mouse game to establish if there are competing interests considering a rival bid.

On Tuesday morning, leading stockbroker Ibersecurities recommended that its clients sell Aldeasa shares, arguing that their value will fall steeply if key stakeholder Altadis refuses to sell. Share volume traded has been falling since the bid was launched on Monday ? 931,888 shares changed hands on Monday, 682,426 on Tuesday and 200,482 on Wednesday. At the moment it is unclear whether a rival bid will be forthcoming.

The key to the deal is the reaction of Altadis, a 34.45% shareholder in Aldeasa. GEA or any counter bidder will need to win its approval and Altadis will seek to maximise value for its own shareholders.

The position of airport authority AENA is also crucial. More than 80% of Aldeasa's turnover goes through AENA-controlled airports. Observers assume that GEA has had informal contact with AENA. However, AENA will seek to guarantee commercial revenues in the medium and long term as it continues to renovate and expand its airport facilities and some question whether the airport authority shares the same objective as any of Aldeasa's potential suitors.