“It’s not the right time, it’s not the right price” that is the response from UK airports operator BAA in its official defence document to the takeover bid by Spanish company Ferrovial.
Chief Executive Mike Clasper said the offer would need to be a lot higher before it considered opening its books as Ferrovial wants. He added the company’s value is “way, way north” of the offer.
BAA said the value of its three London airports – Heathrow, Gatwick and Stansted – is growing swiftly from heavy investment which would deliver greater returns to shareholders.
Ferrovial – whose bid is quite a bit lower than the current BAA share price – has meanwhile reported its results for the first three months of 2006.
They showed a 44% jump in net profit, but the company pointed out that the solid first-quarter performance was driven by contribution from new acquisitions.