Ferrovial receives depressed bids for Gatwick
part of the forced break-up of BAA, its UK airports subsidiary, entered a decisive
were well below the Spanish infrastructure group’s expectations of last September,
when it announced the sale of the UK’s second-largest airport with the hope of
attracting bids in the range of £1.8bn to £2bn.
led by Citi Infrastructure Investors would materialise, although it appeared that
BAA was prepared to stretch its deadline for latecomers.
already owns 75% of London City airport. Its banking consortium is led by Credit
Suisse, JPMorgan and Royal Bank of Canada.
up with Borealis, the Canadian infrastructure fund, which will be lead equity
investor, and the Greater Manchester Pension Fund. It is being advised by Dresdner
Kleinwort, with Barclays Capital leading its banking consortium.
and have been forced to reduce the level of debt and increase the share of equity
in their bids, so lowering the offer prices, in order to attract potential triple
B plus credit ratings.
and John Hancock Life Insurance of the US.
week, when it failed to raise the financing to support its high $2.5bn ( £1.7bn)
bid, which won the contest for Chicago Midway airport in the US last September.
three leading London airports, Heathrow, Gatwick and Stansted, as well as the
two biggest Scottish airports, Edinburgh and Glasgow, is being forced by the UK
UK airports and is a majority-owned subsidiary of Spain’s Ferrovial, should sell
Gatwick, Stansted and one of either Glasgow or Edinburgh airports within two years
in order to improve competition in the UK airports sector.
fund, Vancouver Airport and John Hancock Life Insurance Co, is reported to have
belatedly submitted a bid for Gatwick Airport. BAA is reported to have received
the bid on Tuesday afternoon 24 hours after the original deadline for offers had