Posts: 5805
Joined: Fri Aug 19, 2005 10:54 am

LGW To Be Put Up For Sale?

Sun Jun 04, 2006 8:55 pm

BAA are reported to be considering putting London Gatwick Airport up for sale for £2.5 billion (US $ 4.725 billion) as a defence against the two unwanted take-over bids from the Spanish construction company, Ferrovial, and the consortium led by US bank, Goldman Sachs:


It appears that this move is beoing made to demonstrate that the breakup value of BAA is worth considerably more than that of the current bids. The article says that LGW 'makes up only about 15 per cent of BAA's assets'. While a sale of £2.5 billion would therefore suggest that the asset value of BAA is of the order of £16.7 billion compared to its current market capitalisation £9.783 billion based on a share price of £9.05 compared to Ferrovial's recently increased offer of £9.00 a share, this ignores BAA's not insignificant debt incurred, for example, in building T5 at LHR.

When Ferrovial launched 'a massive dawn raid' to buy BAA shares on the London Stock Exchange on Friday morning it 'largely failed as big shareholders . . . refused to sell their shares [at the prevailing market price]'.

Will BAA survive? What happens to BAA's development plans for LHR East if it does not?

[Edited 2006-06-04 13:55:58]

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos