Ferrovial ‘can profit from BAA break-up’
25.04.08
A forced sale of one of BAA's airports could be a benefit to Spanish owner Ferrovial, providing it with much-needed cash to alleviate a debt burden of £16bn, Reuters reports. The comments come after a conflicting story earlier this week suggested that the Competition Commission report - which raised the possibility of one or more airport sale - would hinder the company's refinancing, causing uncertainty and a downgrade in its bonds from investment grade to junk.
Ferrovial shares have risen more than 7% since the Commission said on Tuesday that competition at BAA's seven UK airports may be improved if they were broken up. Jose Lizan, a Madrid-based fund manager at Nordkapp Inversiones told Reuters: ‘It's good news because if Ferrovial sells an airport they can reduce their debt.' Analysts value Gatwick, the most likely to be sold, at £2-3 billion.
No-one at Ferrovial was available for comment, Reuters said.
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