Gatwick ‘to go for £200m less than expected’
02.05.09
The three rival bidders for Gatwick have offered owner BAA £1.3billion - £1.4billion - nearly £200million less than the price placed on the airport by the Civil Aviation Authority, the Daily Mail reports. And even though the bids are far lower than the £2billion hoped for, the newspaper reports that two bidders are struggling to find the money to complete the purchase.
The Mail reports that BAA's Spanish owner Ferrovial is attempting to help favoured bidder Global Infrastructure Partners, the GE / Credit Suisse backed owner of London City Airport, raise the cash, with a team of 40 working this weekend to come up with funds.
The second bidder, which has also not completed its funding, is reported to be Manchester Airports Group, working with Borealis, a Canadian infrastructure fund, and a UK pension fund. The third bidder, Lysander Gatwick Investment - a consortium consisting of Citi Infrastructure Investors, Canada's Vancouver Airport services and John Hancock Life Insurance of the US - has funding in place.
The bids are reported to be 'so low they could push BAA into challenging the Competition Commission's decision to force it to sell Gatwick, Stansted and either Glasgow or Edinburgh airports'.
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