Spanish construction group Ferrovial launched its takeover bid for British airport operator BAA Plc, but kept its price at 810 pence a share despite hopes of a higher offer, Reuters reports.
BAA had rejected Ferrovial’s original non-binding offer and media had reported that some key BAA shareholders were demanding the Spanish offer more money.
In a statement, Ferrovial said it would still try to persuade BAA’s board to recommend the offer to BAA shareholders.
Earlier, news that Ferrovial was due to launch its bid sent BAA shares 2 percent higher, but after news that the offer price had not changed, the stock fell back.
Ferrovial said it had raised debt financing for the 8.75 billion euros ($10.7 billion) bid from Citigroup, Royal Bank of Scotland, Santander, HSBC and Calyon.
Ferrovial said the consortium was committed to “safe long-term funding” in the bond markets, and planned to consult with BAA’s existing bondholders to help develop its long-term funding plans.
Ferrovial said it was offering to buy back BAA’s convertible bonds due 2008 and 2009, at a price of 125.80% of face value for the 2008 bond and 144.90% for the 2009 bond.