BAA cleared for sell off

[Munnyspinner]

And what did HM Govt. expect when they gave up their golden share? Excatly what is happening today with the vultures circling a cumbersome beast which has been looking a little peaky for the past few years.
What did BAA expect when they agreed a bid for Budapest at 33 times earnings? That nobody would notice? Either they have grossly overbid (probably not) or that they can see hidden value - and if that's the case then BAAplc is grossly undervalued.
The future of BAA is now in the hands of a pretty pedestrian management team. Whatever the outcome of the current speculation the enevitable outcome is likely to be an end of BAA's monopoly in the South east which can only be good for customers.
There is huge latent value in the group overshadowed by monsterous debt generated by T5. Last year BAA sold £800m of property, a fraction of their ownership, and no-one blinked. Even the Scottish Airports must be worth more on their own.

Once T5 comes on stream in 2008 BAA will start spewing out cash. It is this huge potential that the rest of the world want to get control off. Best of luck to the BAA management - but perhaps its time to look for a new job!

[egbt]

And what did HM Govt. expect when they gave up their golden share?

The Govt were forced to give up the golden share (and the 15% max holding rule) by the European Court of Justice.

[LGS6753]

Exactly what "Justice" would that be?

The same one that allows the Spanish Government to offer tax breaks to Spanish companies that make foreign investments?

The whole EU edifice makes me:yuk: :yuk: :yuk:

[Munnyspinner]

It looks increasingly likley that in its defence of a takeover bid BAA will sell off Southampton and the Scottish Airports and retain STN, LGW and LGW under the London Airports Banner. As well as selling more property and other joint ventures.
I have heard a rumour, as yet unconfirmed, that RBS are working with the management at Scottish Airpports to put together a MBO. Autonomy for the Scottish Airports would perhaps be music to the ears of the Scottish government who have long recognised the importance of international air links with EU and rest of the world. An ambitious investment programme independent of the needs of the South East Airports would probably need public support but this would be in line with Scottish Executive policies on integrated transport.
Highlands and Islands airports are already government owned and operated and this model works well. The route development fund provided by Scottish Executive and administered by BAA shows that there is already and affinity. As the Scottish airports fall outwith regulatory control, but operate under voluntary regulatory rules, it is possible that a private operator might seek to exploit this monopoly hence the likelihood, if BAA wished to sell, that Scottish executive would step in.
Interesting times ahead.

[Skipness One Echo]

The Scottish Executive will not and should not get involved beyond the status of interested observer. Real competition between Glasgow and Edinburgh will be worth seeing! Hope the group is broken up, at the min it is almost private monopoly.

[HZ123]

The HIA works well you if you consider it to be payed for by taxpayers from the whole of the UK. As usual the confusion of a possible sale is in total alignment with the pathetic UK transport policy or lack off? Sell it as someone who has worked at BAA airports since 1970 it might provide an improvement.

[Joe Curry]

Real competition between Glasgow and Edinburgh will be worth seeing! Hope the group is broken up, at the min it is almost private monopoly.

BAA (Scottish Airports plc) have a £100M? inhouse Route Development Fund, the distribution being more secret than the going-ons at Area 51:sad:

It's difficult to see any real competition until one discovers
which Scottish airport is bankrolling the others and which airport is being boosted financially:rolleyes: