Spain's Grupo Ferrovial said today that it was considering a bid for Britain's BAA, sending shares in the world's biggest airport operator 22% higher to value it at about £8.5 billion sterling.
Ferrovial, a construction and infrastructure services giant, said it had not yet approached the board of BAA, which operates London's Heathrow, Gatwick and Stansted airports, but said any offer was likely to be in cash and it would be part of a consortium. BAA declined to comment on Ferrovial's announcement.
Ferrovial has traditionally made most of its profits from Spain's booming building industry, but more recently has expanded overseas and into infrastructure services to offset cyclical construction operations.
Last August, the group bought airport handling firm Swissport and said in September it planned to bid for contracts to run Spanish airport services.
Airport services are enjoying a boom as low-cost airlines fuel a rise in passenger traffic, and consolidation is picking up as state-owned operators are privatised.
BAA, which has enjoyed consistent profit growth as the number of passengers passing through its airports soars, fought off Germany's Hochtief in December to buy control of Hungary's Budapest airport from the state for $2.2 billion. BAA owns seven UK airports and has stakes in airports in Australia, Italy and the US.
