Singapore government approaches Ferrovial about investing in BAA as Canadian bank also declares interest.
BAA shares have rocketed after Ferrovial was approached by the Singapore government about being an invester in the bid for the British airports operator yesterday.
Shares surged to a record high, rising by 4%. At one point they climbed to 828p before finally dropping to 810p. The company is now valued at £8.7bn and the interest from this latest bidder has sparked rumours that a bidding war could be on the cards.
Canadian investment banker, Caisse de dépôt et placement du Québec has also been named as an interested party. While analysts predict that a bid could reach 900p, valuing BAA at over £9.5bn, company sources remain doubtful that the value of BAA will soar to £14bn or even £15bn.
One source said: "These are regulated assets, with fixed income streams. It is unlikely that there will be the same sort of premium that occurred at P&O."
