BAA Plc rejects bid from Goldman Sachs

BAA Plc rejects bid from Goldman Sachs

UK based airports operator BAA Plc have rejected an approach from a group involving Goldman Sachs for a possible takeover bid. BAA Plc said that the bid offer was too low.

BAA said in a statement on this rejected bid: “BAA confirms that it did receive a preliminary highly conditional and confidential approach on March 30 from a consortium including Goldman Sachs … to make a cash offer at a price of 870p per share.”

They added that the bid was rejected because “it clearly fails to reflect the true value of the company”. In addition, BAA said that they have not received any updated offer from this group since March 30.

The original bid was of 9.4-billion-pound. Interestingly, the market value of the company at its current share price of 836p is more than 9 billion pounds. BAA Plc operates airports at London’s Heathrow, Gatwick, and Stansted.