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BAA shares peak on bid prospect

BAA shares are reaching an all time high on the London Stock Exchange after reports that it maybe at the centre of a takeover bid from a number of suitors.An earlier report in the Financial Times newspaper is suggesting that the Singapore government and Canadian fund manager Caisse de Depot et Placement du Quebec, have approached Spain’s Grupo Ferrovial about a bid for the UK’s major airport operator.

Shares of BAA, which is is the airport operator for a number of UK sites, including Heathrow, Gatwick and Stansted, have risen by 25 percent in the last week.

The newspaper report suggests that a formal bid is in the offing. And that it could come before February 27 when Ferrovial is due to report its annual results.

BAA could be valued at up to 15billion pounds sterling ($26 billion), including a debt of 5.25 billion.