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BAA may be Forced to Sell an Airport
27/02/2008
BAA, the airport company, could possibly be forced to put one of its airports on the market as Ferrovial, its Spanish owner, admitted that it will be another three to four months before it can finish the refinancing of the significant debts incurred when it bought the UK airports operator. Ferrovial, the Spanish construction company, purchased BAA in 2006 and attempted to refinance the £10bn debt it took on. The company's efforts have been continously affected by the crisis in the credit markets. Recently Ferrovial said that it plans to sell off BAA's duty-free business, however the proceeds from such a sale would account for only a tenth of the debt. Amongst the alternatives is the possibility of a sale of one of BAA's airports in the UK. This is an action that could be forced on the company by a review being undertaken by the Competition Commission.

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