UK airports group BAA has rejected its latest hostile takeover bid, suggesting the approach has undervalued the company.BAA noted the press speculation regarding an approach to it by Goldman Sachs and confirmed that it did receive a preliminary highly conditional and confidential approach on 30 March from a consortium including Goldman Sachs Infrastructure Group to make a cash offer at a price of 870p per share. The proposal also included a partial share alternative in the bid vehicle to be issued in certain circumstances. The proposal was conditional, inter alia, on final approval from the relevant investment committees of the individual members of the Consortium, due diligence by the Consortium, its advisers and financiers and a recommendation from BAA’s Board.
The Board of BAA rejected this approach because it clearly fails to reflect the true value of the Company. Since then, BAA has received no further communication from the Consortium.