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John Dundas · Guest

Government to give up 'golden share' in BAA
http://www.ananova.com/news/story/sm_819970.html

Airports operator BAA confirms the UK Government is preparing to ditch its
golden share in the company, effectively opening it up to takeover bids.

The world's biggest quoted airports company - which owns Heathrow, Gatwick
and Stansted - says it has received special notice from the Government that
it wishes to redeem its special 15% stake at the nominal value of £1.

The holding originated 16 years ago when BAA was privatised and effectively
blocked any unwanted takeover approaches.

In May the European Court of Justice ruled the holding illegal as it
breaches rules on free capital. The Government has decided not to appeal
against the ruling.

While the removal of the golden share puts BAA into play as a takeover
target or for a break up, City analysts believe such a scenario is unlikely.

Transport analyst Dominic Edridge at Commerzbank said: "Nothing is going to
happen. There is no one out there who is even vaguely going to look at them,
particularly at this time."

Despite the sell-off, analysts expect the Government to be intimately
involved in BAA's business as it controls the granting of planning
permission for airport expansions and is currently working on a White Paper
on air travel.

BAA - which also owns Glasgow, Aberdeen Edinburgh and Southampton airports -
is valued at around £5 billion. Shares fell 1.5p to 480.25p.

Story filed: 17:44 Tuesday 16th September 2003