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TheMoodieReport.com: "Stay with BAA� urges UK airports company as it unveils defence against Ferrovial takeover � 03/05/06
Source: �The Moodie Report
By Martin Moodie
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'Stay with BAA'

'We are transforming BAA�s assets and its prospects,� says BAA CEO Mike Clasper in the bullish 31-page defence document
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UK. Airports group BAA today unveiled its formal defence against an �8.8 billion takeover bid from a consortium led by Spain's Grupo Ferrovial.

�We are transforming BAA�s assets and its prospects,� said BAA CEO Mike Clasper in the bullish 31-page defence document. �Shareholders should ignore the Ferrovial Consortium�s offer,� added Chairman Marcus Agius.

BAA said that shareholders will benefit from its huge airport investment programme. Rather than resorting to measures such as share buybacks or special dividends, the company revealed that shareholders will see strong returns from rising passenger traffic at its UK and overseas airports.

'Ferrovial's offer of 810 pence does not take into account the value BAA generates from its London airports, its non-London airports and the exceptional opportunity that lies ahead,' Agius said. 'The BAA board is determined that neither they nor anyone else should be allowed to buy BAA on the cheap,' he said.

It offered four key reasons to �Stay with BAA�:

1. A unique portfolio in a dynamic sector
2. Strong growth of our London airports
3. Even stronger returns from our other businesses
4. A first-rate management team creating value

The document also makes much of BAA�s expertise in driving commercial revenues, noting:

- It has"