GIP's bid for Gatwick rejected

20 May 2009

The £1.3-£1.4 billion bid made for Gatwick airport, by Global Infrastructure Partners (GIP), the owner of London City airport has been rejected by BAA, according to sources familiar with the matter.

The fully financed offer was turned down on Sunday, 17 May on grounds that it was too low. The details are not yet public.

BAA which operates London's Heathrow and Stansted airports was expecting at least £1.5 billion according to one of the sources.

BAA said yesterday that it will appeal a UK antitrust ruling forcing the sale of three of its airports by spring 2011 as it had not factored in the 'adverse financial impact' of divesting assets in a recession. However, it said that the sale of Gatwick, the UK's second-busiest airport would not be affected.

Manchester Airport Group (MAG) is now the only remaining bidder for Gatwick after the exit of Citi Infrastructure Investors last week.

BAA rejected the offer from Citi Infrastructure as uncompetitive with no assurances on deliverability.