BAA owner receives first bids
London City Airport operator Global Infrastructure Partners (GIP) is among the parties vying to buy Gatwick.
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London Gatwick Airport's North Terminal |
The owners of Budapest and Chicago Midway airports are also in the running, though none has confirmed how much they will pay.
With mounting pressure to sell the airport, BAA's parent company Ferrovial has received a number of early indicative offers.
Analysts said tough credit markets and a decline in passenger numbers across the travel sector could lower the value of the UK's second busiest airport.
Debt-laden Ferrovial hopes to net £2bn from the sale but sources close to bidders said BAA's Spanish owner should expect £1.6-1.8bn.
Monday will see the first round of bids for Gatwick but Ferrovial has declined to comment further.
According to reports the following parties have made indicative, non-binding bids:-
- Global Infrastructure Partners (GIP), a joint venture between General Electric, Credit Suisse and the owner of London City airport.
- Hochtief, the German owner of Budapest airport.
- The Lysander Gatwick Investment Group including Citigroup, Vancouver Airport Services and John Hancock Life Insurance Company.
- Gatwick Future Partnership, consisting of Deutsche Bank's RREEF infrastructure in partnership with Australia's Babcock & Brown.
- A Canadian pension funds consortium comprising Ontario Teachers and Canada Pension Plan with 3i Infrastructure.
- Manchester Airport with Canadian Borealis infrastructure.
UK watchdog the Competition Commission (CC) confirmed last month that it required BAA to sell Stansted and Edinburgh Airports, subject to a "final consultation."
But Ferrovial put Gatwick up for sale to pre-empt a CC ruling. The airport has recorded falling passenger numbers with December down 13.8% year-on-year.
Ferrovial has been allowed to keep Heathrow airport with its 65m passengers a year and the third runway, controversially approved last week.
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