BAA falls to Ferrovial

British Airports Authority has finally agreed to the agreed 950p a share offer from Spanish building group Ferrovial, valuing the company at £10bn.

This ends the lengthy and bitter saga since February 2006 when Ferrovial (advised by Citigroup) said it was considering an approach for the Heathrow Airport operator.Goldman Sachs , never ones to miss a chance to line their pockets, caused trouble by attempteding to buy the business rather than acting in its more customary role as an adviser.

BAA - owns and operates 7 UK airports (9,,00 staff) , with 100Mn passengers travelling through London Heathrow and Gatwick a year and 17Mn through Glasgow and Edinburgh - 66% of UK air passenger traffic. For the financial year ending in March 2006, BAA’s UK airports handled 144.6 million passengers, a 2.0% increase over 2004/05. (20% is with "Budget" airlines)

UK traffic growth long term, has been impressive .. 94/95: 87 million 2000/01: 117 million 2003/04: 133 million

Last year BAA’s total revenues were £1,970 million.
Of these revenues:

* Retail revenues were £802m
* Revenues from airport and other traffic charges were £734m
* Revenues from BAA’s property and operational facilities were £305 million
* Other revenues (including rail) were £129 million.
Subsidiary World Duty Free operates 65 stores across BAA's seven UK airports, with 15,000 square metres of retail space offering over 12,500 products. BAA claim it is WDF is the world’s largest and most successful travel retailer.

Since October 1, 1995, BAA Indianapolis LLC has had full operating responsibility for the six airports owned by the Indianapolis Airport Authority under a unique, performance-based, management contract. Indianapolis International is now the largest privately managed airport in the United States. HR staff there are not happy ...

They also have interests in the Italy and Hungary -

The European Commission have already decided that the "proposed transaction would not significantly impede effective competition".

Ferrovial's roots lie in Franco dictatorship

Ferrovial was started in 1952, under the times of Fascist Dictaor Franco, and it grew to prominence under Franco’s dictatorial government.The founder, Rafael del Pino, became one of the richest men in the world, with an estimated fortune of $5bn. He was very close to the regime and benefited from the state corporatist nature of the Spanish economy during the Franco years, is inconceivable that he could have achieved that wealth without the closest collaboration with the projects of the regime.

The company has undertaken work in Libya and reputedly a great deal in Chile under Pinochet.

The company owns 95% of UK construction group Amey and has a 50% stake in Bristol airport and owns Belfast City airport.

Nowadays Ferrovial is headed by del Pino’s son and namesake Rafael del Pino y Calvo-Sotelo (Born 1958)

The Guradian reported Sat April 8th 2006

Ferrovial is controlled by a wealthy family which funds a charitable foundation (Rafael Del Pino Foundation) dedicated to spreading the Spanish language and free market philosophy - an aim which has prompted tensions with the socialist government of José Luis Rodíguez Zapatero. The company negotiates with unions only where it is forced by law to do so.

BAA Shares