State's golden share in BAA is illegal

PAXboy · 15th May 2003, 04:32

This is from The Guardian. (Will have to paste the link in text as hyperlink not functioning)
http://www.guardian.co.uk/airlines/s...955504,00.html

Brussels
Wednesday May 14, 2003
The government was stripped of its power to protect BAA, the airports operator, from a hostile foreign takeover yesterday and ordered to scrap the state's "illegal" golden share in the company.

The ruling, from the European court of justice in Luxembourg, could be the beginning of the end for a string of similar golden shares in former nationalised companies such as National Grid.

It also leaves BAA vulnerable to a hostile foreign takeover, a move which could throw the government's plans for airport expansion in the south-east into disarray. Analysts suggested that potential bidders could include Hong Kong conglomerate Hutchison Whampoa or private equity groups such as WestLB.
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So BAA might get taken over? Would that be by a company that organises aircraft or shops?

Arkady · 15th May 2003, 23:29

Will this ruling also affect NATS? Although I can't imagine anyone would want to buy us at the moment...

PAXboy · 16th May 2003, 03:30

Possibly. Here is more from the article referenced above.

Quote:

Heralding a Europe-wide crackdown on the issue, the court also ordered the Spanish government to scrap similar shares in phone company Telefonica, oil company Repsol and power firm Endesa.

The government, which has fought hard to keep the BAA golden share, said it accepted the judgment. "We will be reviewing the situation in regard to BAA and other golden shares to ensure that they comply with EU law," a spokesman said.

The issue is 'golden shares'. If the govt has one in NATS, then it could be debated.

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