Spanish group considers bid for BAA

Dermot Davitt

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Construction company Grupo Ferrovial has said it is considering an £8bn bid for the UK airports group

Spain's Grupo Ferrovial is considering making an offer for UK airports group BAA. Ferrovial said in a statement today that it was "considering making an offer for the entire issued and to be issued share capital of BAA". BAA said it would respond later today. Prompted by the news, BAA's share price has surged by more than 20% today, leaving the company valued at over £8bn ($13.5bn).

Ferrovial said any bid would be in cash and probably as part of a consortium. Ferrovial is Spain's second biggest construction group and it has a stake in Belfast and Bristol airports.

BAA, which operates seven UK airports including London Heathrow, Gatwick and Stansted, generated operating profit of £412m ($700m) in the first half of its 2005/06 financial year.