Crisis edges airport takeover closer

Cardiff airport could pass into French hands

The owners of Cardiff International Airport have dropped opposition to a French takeover following a slump in the air industry after US terrorist attacks.

TBI, which also owns a string of other airports, had previously rejected a £515.9m hostile takeover by building giant Vinci.

In light of recent events in the air transport and travel sectors, the board has reconsidered

TBI statement

But the worsening crisis in the sector, in the wake of the plane hijackings, makes the buy-out almost certain.

British Airways is cutting around 7,000 jobs and withdrawing 20 aircraft from service, Virgin Atlantic is axing 1,200 positions.

The BAE Systems plant in Broughton, Flintshire, which builds wings for the new European A380 Airbus, has now been told the company is freezing recruitment.

The factory is in the process of recruiting 1,700 more workers to handle the contract and there are fears over those posts - on Friday, airlines threatened to ground their fleets from next week unless the government insured them against terrorism.

However, Airbus has said construction for the contract in north Wales will continue.

Offer rejected

Watford-based TBI, which owns Luton, Belfast International and Stockholm Skavsta airports, turned down the Vinci offer in mid August after the former Vivendi subsidiary bought up 14.9% of the company's shares in a bid to take control from the directors.

But the company, the UK's second biggest airport operator, has now said the offer is "fair and reasonable."

The Broughton plant builds A380 wings

Company bosses have urged shareholders to accept the 90p share offer after last week warning the valuation was not enough.

A spokesman said: "In light of recent events and current market uncertainty, in particular in the air transport and travel sectors, the board has reconsidered its recommendation.

"The directors now believe that a cash offer of 90p per TBI share, in current circumstances, appears fair and reasonable."

It is a clear indication the TBI board believe the offer could be the best they get in the current climate, which has seen air shares dip sharply.

But Vinci is still able to escape the deal or reduce its previous offer.

Annual profits

The group, which has its UK head office in Watford, employs around 7,000 people in the UK on a range of projects including a Cardiff-based PFI deal and a contract to maintain the bridges on the River Severn.

However, it does not have a presence in the UK airport sector, despite having interests in airports around the world.

Cardiff International Airport handles 1.5m passengers annually and is one of the most successful regional airports.

Cardiff airport handles 1.5m passengers a year

Chairman Stan Thomas is the brother of Cardiff rugby club owner Peter - and one of Wales's richest men.

The outfit reported underlying pre-tax profits of £19.3m for year ended March 2001, up 6% on the year before.

Vinci, which employs 7,000 in the UK, was spun off from ambitious French media firm Vivendi in February 2000 and has a contract to maintain the Severn Bridges.

TBI has been tending to its own ambitions to become a major airport player after converting from a property company in 1995.

'Cool heads'

John Hamilton, regional organiser for the Amalgamated Engineering and Electrical Union, which represents the BAE workers at Broughton said over 800 of the planned 1,700 jobs had already been created at the plant.

"We are hopeful that we will maintain this year's programme and looking to next year, beyond the same level," he said.

"Airbus have announced that the A380 project will go ahead, despite the problems with Lufthansa."

It was a time for "cool heads and professional thinking," he added.