Temasek hopes to buy BAA airports | Business | Breaking News 24/7 - NEWS.com.au (12-06-2006)

Temasek hopes to buy BAA airports | Business | Breaking News 24/7 - NEWS.com.au (12-06-2006): "Temasek hopes to buy BAA airports
From: By Mark Kleinman and Dominic O'Connell
June 12, 2006
AN investment group backed by the Singapore Government is drawing up plans to acquire airports it hopes will be offloaded by the new owner of BAA, the British group that last week succumbed to a �10 billion ($25 billion) takeover.
Sources said Temasek, which owned Singapore's Changi Airport, had at one stage considered mounting its own bid for BAA. But they said it was now working with investment bank JP Morgan on acquisitions that could arise from BAA's takeover by a consortium led by Spanish infrastructure company Ferrovial and including GIC, another Singaporean investment fund.
But they cautioned that a change of Singaporean transport minister earlier this month could interfere with Temasek's plans.
Ferrovial, led by Rafael Del Pino, has already indicated it may eventually break up the portfolio of BAA airports, which includes Heathrow, Gatwick and Stansted in London and Edinburgh and Glasgow.
The Spanish group has given strong hints that it will sell BAA's airport assets outside the UK, the largest of which is Budapest Airport.
Temasek has been eager to get involved in big infrastructure deals for some time. It made an unsuccessful attempt to gatecrash Dubai Ports World's takeover of P&O.
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On Friday, Mr Del Pino flew to London to meet BAA's management. He said he was eager to retain the company's top brass. 'I think they have done a very good job of defending their company, and that shows their calibre,' he said.
Sources said while they expected chief executive Mike Clasper to stay for a transitional period, he was likely to disappoint Mr Del Pino and move "