Investors poised to grab BAA holdings
Investors poised to grab BAA holdings - Heathrow,Gatwick,Southampton,Stansted Airport News
Airport news for Heathrow,Gatwick,Southampton,Stansted on 06/03/2008.
A recent report claims that Australian investors may be interested in buying up some of the biggest airport in Britain if airport operator BAA is forced to sell some of its holdings by an upcoming ruling on the operator’s monopoly status in Britain.
Macquarie, a banking group from Down Under, has already began discussions with various investment funds to determine the level of interest present in a possible purchase of BAA’s main holdings, according to the Sunday Telegram.
The British Airports Authority is a Spanish owned company currently the subject of an inquiry by the Competition Commission (CC). The CC is investigating whether BAA’s holdings restricts competition in the country. Depending on their ruling, the company could stand to lose its stake in Heathrow, Gatwick, Stansted, Southampton, Aberdeen, Edinburgh and Glasgow, stakes others are eager to snap up.
Next month, the commission is scheduled to release “emerging thinking” on the inquiry. A recommendation is also expected at that time, and many expect a partial break-up of BAA’s holdings to be among the commission’s suggestions.
The commission’s final report should be released by the end of the year.
Last March, BAA was referred to the commission by the Office of Fair Trading due to "reasonable grounds to suspect that BAA's high regional market shares in the south east of England and Lowland Scotland, the system of economic regulation of airports and capacity constraints combine to prevent, restrict or distort competition".
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