LONDON (AFX) - BAA PLC, the world's biggest airport operator, has confirmed that it received a a 'highly conditional' bid approach on March 30 from a consortium including US investment bank Goldman Sachs which proposed making a cash offer worth 870 pence per share.
In a statement, BAA, which is fending off a hostile bid from Spanish construction conglomerate Grupo Ferrovial SA, said it rejected the Goldman approach because it did not reflect the true value of the company.
It said it has received no further communication from the consortium since it rejected the proposal.
It said the proposal was conditional on approval from the investment committees of the individual members of the consortium, due diligence by the consortium, its advisers and financiers and a recommendation from BAAs board.
BAA's statement followed a report in today's Sunday Times, which claimed the airports group had received a 'white knight' approach from Goldman Sachs worth close to 10 bln stg.
BAA, which owns seven British airports, earlier this month snubbed an 8.75 bln stg hostile bid from Ferrovial.
The Ferrovial offer, worth 810 pence per share, was pitched at the same price as an earlier informal approach, which was also rebuffed by the BAA board.
Ferrovial, which is being advised by Citigroup and Macquarie, will kick off the formal timetable under Takeover Panel rules when it posts its offer document to BAA shareholders in the next three weeks.
The Sunday Times said it believes the Spanish group is prepared to raise its offer, although many investors are holding out for at least 900 pence a share, a price that would value the entire company at 9.75 bln stg.
The paper said Goldman had held talks with potential partners, including the Canadian pension funds Borealis and Ontario Teachers, though firm support was unlikely to emerge until the BAA board indicated its willingness to engage. rob.branch@afxnews.com rhb/ak COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited