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Last Updated: Tuesday, 18 April 2006, 08:12 GMT 09:12 UK
BAA rejects latest takeover bid
Aircraft taking off at Edinburgh Airport
BAA is attracting much bid interest
UK airports group BAA has stood firm in rejecting the latest hostile takeover bid, saying the approach undervalued the company.

BAA has confirmed that it received and rejected an 870 pence-per-share bid from a consortium led by Goldman Sachs.

"The board of BAA rejected this approach because it clearly fails to reflect the true value of the company," BAA said in a statement.

BAA runs seven UK airports, including Heathrow, Gatwick and Stansted.

Bid battle

Goldman Sachs management has meanwhile banned the bank from using its own money in hostile offers, the Financial Times has reported.

BAA AIRPORTS
Heathrow
Gatwick
Stansted
Southampton
Glasgow
Edinburgh
Aberdeen

The newspaper said Hank Paulson, Goldman Sachs' chief executive, had ordered the bank to stop making hostile bids using its own money following a "backlash against its role in a string of UK offers".

The bid for BAA from the Goldman Sachs-led consortium came after a consortium led by Spanish construction group Ferrovial had seen their hostile bid of 810p per share rejected.

At the time BAA said that the Ferrovial offer undervalued the company and was "not beginning to reflect the true value of BAA's unique portfolio of strategic airport assets".

BAA is the largest airports operator in the UK, and has also been looking to expand abroad.

It recently trumped other rivals when it paid the Hungarian government $2.2bn (1.24bn) for control of Budapest airport.




SEE ALSO:
Cold snap hits BAA user numbers
11 Apr 06 |  Business
BAA rejects hostile Ferrovial bid
07 Apr 06 |  Business
UK panel fixes BAA bid deadline
22 Mar 06 |  Business
BAA rejects Spanish takeover bid
17 Mar 06 |  Business


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