Inquiry could force BAA break-up - Industry sectors - Times Online

Inquiry could force BAA break-up - Industry sectors - Times Online: "BAA�s iron grip on London�s dominant airports has come under attack after the Office of Fair Trading launched an investigation that could result in the forced break-up of the owner of Heathrow, Stansted and Gatwick.
The OFT is expected to take at least three months to investigate the UK airports market, in which BAA is the dominant player. It is the OFT�s first inquiry into Britain�s airports market, and observers suggest that BAA�s takeover by Spanish suitor Grupo Ferrovial was the trigger.


Although the OFT remained open-minded about the possible outcome of its inquiry, any concerns about the level of influence wielded by BAA would almost certainly result in a referral to the Competition Commission, which can force a break-up of the airports group.
The OFT inquiry could be a blow to Ferrovial, which is in the process of completing its �10.1 billion takeover of BAA. Ferrovial went ahead with its takeover despite a cautionary statement from the OFT in late May that it was considering a full-blown inquiry into the UK airports market. The Spanish group has already secured 84 per cent of BAA�s equity and cannot back out of the deal.
A Ferrovial spokeswoman said: �We look forward to coordinating closely with all the regulators and working in the best interests of stakeholders and passengers.�
Shareholders in Ferrovial shrugged off the OFT move, marking their company�s Madrid-listed shares up 1.6 per cent to �59.70.
The OFT will seek submissions from all airport users.
British Airways, the dominant airline at Heathrow, welcomed the OFT inquiry, while Ryanair, the biggest player at Stansted, reiterated its call for BAA to be broken up.
Jim Callaghan, Ryanair�s head of regulatory affairs, said: �We hope that the O"