Ferrovial ‘gearing up for BAA break-up’
27.04.08
Ferrovial, the Spanish conglomerate that bought BAA for £10.2bn in 2006, is reported to be gearing up for a break-up of the UK airports operator. And a former BAA executive told the Independent: ‘What people don't realise is that Ferrovial is going to end up getting one of the greatest steals in corporate raiding history.'
The newspaper says that 'insider', has told them that the capacity constraints at Heathrow, Stansted and Gatwick meant Ferrovial was always prepared to sell parts of the portfolio. ‘It did due diligence, so this situation [the Competition Commission possibly forcing airport sales] came as no surprise.’
A second source told the Independent that while Macquarie, the Australian investment bank, has been reported as advising on refinancing BAA's unregulated airports – Glasgow, Edinburgh, Aberdeen and Southampton – it has also been valuing chunks of the portfolio. The source concludes that Ferrovial is gearing up for a sale.
BAA has already sold 33 properties and its World Duty Free retail chain for a total of more than £800m. A further property sale under negotiation should bring in £700m (although its share of the proceeds, net of debt and its joint venture partners interest will be considerably less).
Gatwick could fetch £3bn and ‘if they get dead lucky’, the first source told the newspaper, adding that Ferrovial might also be able to sell Stansted. All that could total £6bn, 'which would mean the Spaniards end up spending a net sum of well under £5bn'. Heathrow, meanwhile, has fixed assets worth £8bn – hence the description as one of the great corporate raids.
A senior City transport banker agreed with the analysis. He told the Independent: ‘Heathrow is the important thing here - nothing else is critical to Ferrovial.’
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