GIP’s Gatwick Bid of More Than $2 Billion Said to Be Rejected

19.5.2009   (Bloomberg)

By Ambereen Choudhury     (this story is still speculation and not confirmed)


 Global Infrastructure Partners, the owner of London City airport, made a 1.3 billion-pound ($2 billion) to
1.4 billion-pound bid for Gatwick airport that was rejected by
BAA Ltd., said two people familiar with the matter.

The fully financed offer was turned down May 17 on the grounds that it was too
low, said the people, who declined to be identified because the details aren’t
public. BAA, which also operates London’s Heathrow and Stansted airports, was
seeking at least 1.5 billion pounds, one of the people said.

BAA said yesterday it planned to appeal a U.K. antitrust ruling forcing it to
sell three airports by spring 2011 because it didn’t take account of the "adverse
financial impact" of divesting assets in a recession.     BAA, owned by Spanish
Grupo Ferrovial SA, said it was continuing the sale of Gatwick, the U.K.’s second-busiest airport
after Heathrow.

GIP had no comment, said Stephen Hardwick, a spokesman in London. Malcolm Robertson, a spokesman for BAA, and Jamie Fagoaga, a spokesman for Ferrovial, also declined to comment.

Manchester Airport was the other remaining bidder for Gatwick after a group led
by Citi Infrastructure Investors was eliminated last week, people familiar with
the situation said at the time.    BAA called the offer from Citi Infrastructure
uncompetitive with no assurances on deliverability.

The Competition Commission said March 19 that BAA should dispose of Gatwick,
Stansted and either Edinburgh or Glasgow airport in Scotland by spring 2011 in
order to end its market dominance. Ferrovial paid 10.1 billion pounds for BAA
in 2006.

GIP is still interested in the Gatwick assets, the people said. Citi’s Lysander
group said on May 13, after it was expelled from the bidding, that it was also
still interested in buying Gatwick and had full funding for the purchase.

To contact the reporter on this story: Ambereen Choudhury in London at at
see also

Setback for Ferrovial as Gatwick bidder quits

Date Added: 20th May 2009

Ferrovial’s hopes of securing a higher price for Gatwick have been hit by the
withdrawal of one of its two remaining bidders. The departure of Global Infrastructure
Partners from the current sale process leaves the Spanish infrastructure group
with only one remaining offer, from a consortium led by Manchester Airports Group
and Borealis, the Canadian infrastructure fund. BAA must repay £1bn of its existing
bank debt in March next year. (FT)

Click here to view full story…