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Ferrovial cleared for $18.8bn BAA takeover

Spain’s Grupo Ferrovial moved closer to a £10.1bn($18.8bn) takeover of BAA on Thursday, upping its stake in the UK airport group as talks between BAA and a rival bidder broke down.

Agencies|
Jun 09, 2006, 12.58 AM IST
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LONDON: Spain’s Grupo Ferrovial moved closer to a £10.1bn($18.8bn) takeover of BAA on Thursday, upping its stake in the UK airport group as talks between BAA and a rival bidder broke down.

BAA and a consortium led by US investment bank Goldman Sachs said they were no longer in talks, closing the door on a potential agreed deal between the two sides.

The Goldman Sachs consortium said it a statement it would not proceed with an offer, ruling out a hostile approach.Meanwhile Ferrovial’s bidding consortium, which agreed with BAA on a 935-pence-a-share offer on Tuesday, said it had snapped up another 140m BAA shares early on Thursday, increasing its total stake in BAA by 12.9 percentage points to 28.7%.

Analysts said this would have stopped the Goldman Sachs team or any other potential rivals from coming in with a hostile bid.

“If Ferrovial control more than 25% there is no way for Goldman to ever get to 100%. If this is the case, then it really is done and dusted because nobody can shift them,” said Gerald Khoo at Oriel Securities.

BAA shares were trading 0.6% weaker at 929p at 1134 GMT. Ferrovial was 5.1% weaker at 54.20 euros in Madrid.

BAA chose the Ferrovial consortium’s offer on Tuesday over a slightly higher 940p-a-share bid from the Goldman Sachs group partly because it was at a more advanced stage and also because it offered investors the choice of receiving shares.

Ferrovial’s consortium includes Canada’s Caisse de depot et placement du Quebec and Singapore’s GIC Special Investments.
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