BAA rejects increased Ferrovial offer

The Spanish company Grupo Ferrovial claims that UK airport group BAA has rejected it’s significantly improved cash offer of 900 pence per BAA Share, valuing the firm at £9.73bn.Grupo Ferrovial suggests that BAA has chosen to reject such offers without further discussion so in the abxsence of negotiation is making the offer public to try and lure shareholders.

The BAA board wrote to shareholders last week explaining in detail its reasons for believing that the intrinsic value of BAA is more than 940 pence per share. According to them, “This figure does not reflect the value of future opportunities for BAA or the impact of the group’s convertibles. But most importantly, this intrinsic valuation does not include the premium that any bidder should expect to pay to acquire control over BAA’s unique portfolio of assets”

Marcus Agius, BAA Chairman, commented: “We have evaluated the Ferrovial Consortium’s revised offer but the Board is clear that it still falls well short of the true value of the company, which we explained to shareholders in our circular last week. The Board is also clear that the revised offer does not reflect a suitable premium for control of BAA’s unique assets.
“I believe that BAA has an exceptional future under Mike Clasper and his team, who are committed to delivering outstanding shareholder value. We remain determined that this company, with its unique assets,  will not be sold to the Ferrovial Consortium or any other bidder on the cheap.”
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