LONDON, Oct 8 (Reuters) - British airports operator BAA on Wednesday said it hired HSBC and RBS as advisers for the sale of Gatwick Airport.
BAA decided to sell the London airport after Britain's Competition Commission said in a provisional ruling in August that the unit of Spain's Ferrovial must sell three of its seven UK airports.
BAA has said it disagreed with the Competition Commission, and would try to keep six UK airports after the sale of Gatwick.
Ferrovial bought the BAA for 10 billion pounds two years ago, valuing the seven airports at a 30 percent premium to their combined regulated asset base.
That means it would need to attract a bid of more than 2 billion pounds to make a profit on Gatwick, the second-biggest airport in the UK, serving 35 million passengers a year.
A string of potential bidders, including airline Virgin Atlantic [VA.UL], German builder Hochtief, Frankfurt airport operator Fraport, Deutsche Bank's infrastructure arm RREEF and Manchester Airports Group, have expressed their interests.
But the global financial crisis could deter the bidding as costs of capital rise sharply.
BAA has said the sale might not be completed before the Competition Commission publishes its final report early 2009.
The complicated nature of the deal means it could take six months to prepare for the sale people, familiar with the matter said.
(Reporting by Daisy Ku; Editing by Paul Bolding) Keywords: BAA GATWICK tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
BAA decided to sell the London airport after Britain's Competition Commission said in a provisional ruling in August that the unit of Spain's Ferrovial must sell three of its seven UK airports.
BAA has said it disagreed with the Competition Commission, and would try to keep six UK airports after the sale of Gatwick.
Ferrovial bought the BAA for 10 billion pounds two years ago, valuing the seven airports at a 30 percent premium to their combined regulated asset base.
That means it would need to attract a bid of more than 2 billion pounds to make a profit on Gatwick, the second-biggest airport in the UK, serving 35 million passengers a year.
A string of potential bidders, including airline Virgin Atlantic [VA.UL], German builder Hochtief, Frankfurt airport operator Fraport, Deutsche Bank's infrastructure arm RREEF and Manchester Airports Group, have expressed their interests.
But the global financial crisis could deter the bidding as costs of capital rise sharply.
BAA has said the sale might not be completed before the Competition Commission publishes its final report early 2009.
The complicated nature of the deal means it could take six months to prepare for the sale people, familiar with the matter said.
(Reporting by Daisy Ku; Editing by Paul Bolding) Keywords: BAA GATWICK tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News