RBS 'may fund Spanish takeover of BAA'
Further signs of an imminent bid for BAA emerged today after it was reported Royal Bank of Scotland had a key role in funding a Spanish-led takeover.
The speculation over the financing involvement of RBS, alongside Citigroup, fuels expectations that a consortium led by Grupo Ferrovial is making progress putting together a £9bn (€13.1bn) offer for the Heathrow operator.
Ferrovial, the Spanish infrastructure group which revealed its interest in a possible bid three weeks ago, is said by the Sunday Times to have secured Temasek, the Singapore government’s investment vehicle, and a Quebec-based fund manager as partners in its consortium.
On Friday, BAA shares jumped 4% as rumours circulated in the London market that Ferrovial was close to making its approach to BAA.
Ferrovial, which already owns Belfast City airport and 50% of Bristol airport, is said to be comfortable with the regulated nature of BAA’s businesses and the fact that three-quarters of revenues are set by the Civil Aviation Authority (CAA).
The CAA has stressed that it would not raise caps on airport charges so that any bidder could generate enough cash to pay back loans taken out during a takeover. It said this was important as significant sums would have to be spent on upgrading facilities at Heathrow, Gatwick and Stansted airports in coming years.
