Ferrovial of Spain on Tuesday warned that a proposal by UK regulators to break up BAA, its UK subsidiary, would lead to poorer standards of services and a delay in the delivery of new runways. Despite its opposition to the Competition Commission’s findings, Ferrovial’s shares rose Wednesday as investors hoped that a forced sale of assets such as Gatwick airport could bring relief to the company’s balance sheet at a time when the infrastructure and building group is struggling to refinance its heavy debt load. Ferrovial has always opposed a break-up of BAA, which it bought for £10.3bn two years ago and through which it controls seven UK airports. Lex, however, says it is time.

This entry was posted by Gwen Robinson on Thursday, August 21st, 2008 at 5:17 and is filed under Capital markets, M&A. Tagged with baa, ferrovial. Edit this entry.