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Airport authority BAA ignores Ferrovial's cash offer
22 Mar '06
3 min read
Airport authority BAA plc (BAA) has received a pre-conditional proposal from Grupo Ferrovial SA (Ferrovial) and its consortium partners to make a cash offer for BAA at 810 pence per share.
This proposal is conditional, inter alia, on due diligence and a recommendation from the Board of BAA. The proposal goes on to say that the Consortium would be willing to increase its offer by “a small increment” in return for BAA agreeing to grant limited due diligence access and recommending the Consortium's offer.
The Board of BAA met this morning and has no hesitation in rejecting this proposal, which does not begin to reflect the true value of BAA's unique portfolio of airport assets. On the basis of this proposal, the Board does not believe it is in shareholders' interests for it to enter into discussions with Ferrovial.
Marcus Agius, Chairman of BAA, commented: "Since Ferrovial made its first announcement about BAA five weeks ago, attention has focused upon the value of our assets and the quality of our management. We believe that a period of exceptional opportunity lies ahead. Delivering enhanced value to our shareholders remains this company's first priority."
The Board of BAA has received financial advice from Rothschild and UBS. In providing this advice, Rothschild and UBS have placed reliance on the commercial assessments of the Directors.
The Directors of BAA accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the Directors of BAA (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.
This proposal is conditional, inter alia, on due diligence and a recommendation from the Board of BAA. The proposal goes on to say that the Consortium would be willing to increase its offer by “a small increment” in return for BAA agreeing to grant limited due diligence access and recommending the Consortium's offer.
The Board of BAA met this morning and has no hesitation in rejecting this proposal, which does not begin to reflect the true value of BAA's unique portfolio of airport assets. On the basis of this proposal, the Board does not believe it is in shareholders' interests for it to enter into discussions with Ferrovial.
Marcus Agius, Chairman of BAA, commented: "Since Ferrovial made its first announcement about BAA five weeks ago, attention has focused upon the value of our assets and the quality of our management. We believe that a period of exceptional opportunity lies ahead. Delivering enhanced value to our shareholders remains this company's first priority."
The Board of BAA has received financial advice from Rothschild and UBS. In providing this advice, Rothschild and UBS have placed reliance on the commercial assessments of the Directors.
The Directors of BAA accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the Directors of BAA (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.
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