French construction group Vinci today walked away from its takeover offer for Luton Airport owner TBI.
TBI had vigorously resisted the £517m approach until last week, when, in the wake of the terrorist attacks on the US, the group did a U-turn and recommended the bid to shareholders.
More than 70% of shareholders voted in favour of the approach, but Vinci said today that it had decided to let the offer lapse.
Vinci was able to withdraw the offer if it received acceptances from shareholders holding less than 90% of TBI’s shares.
The bid won approval from 71.46% of the entire issued share capital, which represented 83.97% of shares not already owned by Vinci.
The TBI deal would have given Vinci its first foothold in the UK airport market – as well as Luton, TBI owns Belfast International and Cardiff International airports.
Vinci declined to discuss its reasons for letting the offer lapse, but sources close to the group said the 90p-per-share bid was deemed too expensive after the US attacks, which have hit the airline industries hard.
TBI’s international operations include the airports Stockholm Skavsta in Sweden and Orlando Sandford in Florida, as well as US-based airport services group AGI.
Vinci said it had “no current intention” to sell its 14.9% stake in TBI.
Before recommending the bid, TBI – whose Luton operation is home to no-frills airline easyJet – had claimed that the £517m offer undervalued the group.
Chief executive Keith Brooks said today: “TBI has an outstanding portfolio of regional airports, operating in a sector of the aviation industry which is relatively unscathed following the US events.
“Now that Vinci has lapsed its unsolicited offer for TBI, we will continue to pursue actively our strategy of generating value for shareholders.”
The group added that it had reviewed current trading and its prospects after the terrorist attacks.
It said: “The board does not consider, in the absence of unforeseen circumstances, that there will be a material adverse effect on the company’s results for the year ending 31 March 2002.”
News that the Vinci offer had lapsed did not inspire the City, however, and by mid-morning TBI’s shares had fallen by 19% or 11p to 46.5p.
EGi News 25/09/01
