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TheMoodieReport.com: "Ferrovial set to up the ante in BAA takeover as it appoints Macquarie as co-advisor � 29/03/06
Source: �The Moodie Report
By Martin Moodie
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SPAIN. The consortium comprising Ferrovial Infraestructuras (of which Grupo Ferrovial is the sole shareholder), Caisse de d�p�t et placement du Qu�bec and an investment company managed by GIC Special Investments Pte Ltd created to acquire UK airports operator BAA, has appointed Macquarie Bank Limited as its financial co-adviser for that operation.

Macquarie will work in conjunction with the consortium's current adviser, Citigroup Global Markets Limited.

Ferrovial Infraestructuras has also reached an agreement with Macquarie Airports under which the two parties grant each other conditional call and put options on the holdings of Ferrovial Aeropuertos (a 100% subsidiary of Ferrovial Infraestructuras) in the capital of the companies owning the rights to Sydney and Bristol airports, in Australia and the UK respectively.

Exercise of the options is conditional upon the acquisition by the Consortium of a controlling stake in the capital of BAA.

If that condition is met, MAp has the option to buy 20.9% of the capital of Sydney Airport and 50% of the capital of Bristol airport from Ferrovial Aeropuertos.

This arrangement seems to eliminate Macquarie as a rival bidder for BAA. It simultaneously strengthens Ferrovial's hand while offering an attractive 'sweetener' to Macquarie.

The strike price of both options is based on the valuation of those assets by MAp in December 2005, net of any earnings distributions which those companies may make after the date of the agreement. Those prices currently amount to approximately A$1.009 billion Australian "