Post by Humberside on Jul 19, 2009 15:11:56 GMT
The sale of Gatwick looks increasingly unlikely, at least until the result of the appeal by BAA over the Competition Commissions ruling that it must sell the airport, after it was reported that Manchester Airports Group (MAG), the last remaining bidder, has pulled out after failing to meet BAA's asking price.
Gatwick was put up for sale ahead of the Competition Commission's ruling that BAA's stranglehold of UK airports was bad for consumers. However an auction process appears to have fallen apart with the withdrawal from the process of the MAG, who reportedly walked away after refusing to match BAA's reserve price of £1.5 bn.
Of the original three bidders in the auction, the owners of London City Airport, the investment fund Global Infrastructure Partners, a joint venture between General Electric of the US and Credit Suisse, pulled out last month when BAA appealed the Competition Commission's ruling, whilst the third bidder, a Citigroup-led consortium, were kicked out by BAA two months ago.
All three groups are reported to remain interested in acquiring Gatwick - one of the most attractive airport assets on the market worldwide - but are reluctant to meet the target price set by BAA, given the deterioration in the airport's traffic performance. They are also said to be seeking to exploit the growing pressures for BAA to complete a sale. BAA must repay £1bn of its existing bank debt in March next year and the sale of Gatwick would help the refinancing.
Gatwick was put up for sale ahead of the Competition Commission's ruling that BAA's stranglehold of UK airports was bad for consumers. However an auction process appears to have fallen apart with the withdrawal from the process of the MAG, who reportedly walked away after refusing to match BAA's reserve price of £1.5 bn.
Of the original three bidders in the auction, the owners of London City Airport, the investment fund Global Infrastructure Partners, a joint venture between General Electric of the US and Credit Suisse, pulled out last month when BAA appealed the Competition Commission's ruling, whilst the third bidder, a Citigroup-led consortium, were kicked out by BAA two months ago.
All three groups are reported to remain interested in acquiring Gatwick - one of the most attractive airport assets on the market worldwide - but are reluctant to meet the target price set by BAA, given the deterioration in the airport's traffic performance. They are also said to be seeking to exploit the growing pressures for BAA to complete a sale. BAA must repay £1bn of its existing bank debt in March next year and the sale of Gatwick would help the refinancing.
www.uk-airport-news.info/gatwick-airport-news-160709b.html