UK. Airport Development and Investment Limited (ADI), the Ferrovial-led consortium that secured agreement to buy BAA on June 6, spent subsequent days snapping up BAA shares. Last week the consortium bought 140 million shares in BAA, or 12.9%, and now controls 28.7% of BAA’s ordinary share capital.
The move effectively blocks the way for any rival to put forward an alternative offer. Ferrovial’s advisor Citigroup has spent around £3 billion on shares, a move that helped seal the failure of the bid by a consortium headed by Goldman Sachs’ Infrastructure Group.
Goldman Sachs withdrew from the running on June 8 after it failed to secure the backing of the BAA board for its 955 pence a share bid for BAA.
On a day of high drama, Goldman issued a statement urging investors not to sell their shares, insisting that it was “in discussions” with BAA. But just minutes later, BAA issued a statement that said: “The board of BAA informs shareholders that talks between BAA and a consortium including Goldman Sachs’ Infrastructure Group have ceased.”
Goldman Sachs objected to the Takeover Panel about the £115.5 million break fee that BAA would have to pay if it reneged on its agreement with Ferrovial. But the Panel rejected Goldman’s claim yesterday.
Just after midday Goldman Sachs finally gave up its bid and said: “The consortium, including Goldman Sachs’ Infrastructure Group, confirms that discussions with the board of BAA have ceased. Accordingly, the consortium announces that it will not proceed with an offer for BAA.”
Ferrovial also allayed concerns over its takeover on anti-competitive grounds in Australia. As reported yesterday, the Australian Competition & Consumer Commission indicated it would look into the purchase.
But ADI has since confirmed that it has received the necessary regulatory clearances under the Australian Airports Act and Foreign Acquisitions and Takeovers Act.
ADI’s offer for BAA will become unconditional on 26 June.
MORE STORIES ON BAA
BAA pulls out of Goldman Sachs talks; clears the way for Ferrovial takeover – 08/06/06
Ferrovial consortium “committed to long-term ownership” of BAA; to review overseas assets – 06/06/06
