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UK. BAA this morning ended takeover talks with the consortium led by Goldman Sachs Infrastructure Group, paving the way for the UK airport group�s acquisition by Airport Development & Investment Ltd (ADI), led by Ferrovial.

In a brief statement this morning, BAA said: �The Board of BAA plc informs shareholders that talks between BAA and a consortium including Goldman Sachs Infrastructure Group have ceased.�

The move followed dramatic last-gasp efforts by Goldman Sachs to keep its bid alive. Goldman Sachs itself released a statement earlier this morning confirming talks were continuing, and advised shareholders to take no action on the Ferrovial offer. BAA�s statement now looks to have ended the group�s ambitions.

The BAA board accepted an ADI offer valuing the company at �10.3 billion on Tuesday, although the Goldman Sachs-led offer was marginally higher, at 955.25 pence per share (including a final dividend of 15.25 pence).

Having secured a deal with Ferrovial, BAA would have had to pay a �break fee� of �115.5 million to switch sides and sell to Goldman Sachs. Another complication for Goldman Sachs was Ferrovial�s move on Tuesday to buy 13.9% of BAA shares, worth over �150 million. Any rival bidder would need to control 90% of the shares to buy out minority shareholders.

The offer from Ferrovial and its partners becomes unconditional on 26 June, although it can still revise the terms of its offer until 12 June.

Meanwhile, according to press reports, Australia�s anti-trust regulator will review Ferrovial�s bid, to assess whether it reduces competition between the country�s airports.

Under Australian law, the Australian Competition & Consumer Commission can bl"