If Manchester Airports Group were to make a bid for Stansted, there would presumably be a fairly hefty loan (or even a bond issue) from a few banks.
As MAG is owned entirely by Manchester local Govt, are there any Govt-based constraints as to how much additional debt MAG can take on ? In addition, would the various boroughs of Manchester along with the city council be able to put some equity into such a purchase, or would it have to rely entirely on debt and MAG's own cash reserves ? Yes, S&P have rated MAG as single A, but the existing borrowings of approx £350m makes me wonder about the capacity of MAG to swallow something as big as STN
I'm trying to figure out whether MAG really has the financial firepower to be a credible bidder for STN or, similiar to the situation of BA taking interest in Alitalia a couple of years ago, whether it's just trying to have a good look through the confidential books of a rival.