BAA offerred less than expected for Gatwick

Ferrovial has reported that BAA has received two bids for Gatwick airport; one from Global Infrastructure Partners and another from a consortium led by Manchester Airport Group.

Bids for the airport are thought to be between £1.3 billion and £1.5 billion, much lower than the previously expected £2 billion sum.

A proposed third bid from the GIP fund has yet to materialise but BAA would be prepared to extend the deadline for late bids, according to the Financial Times.

The GIP fund already owns 75 per cent of London City airport, and is made up of Credit Suisse, General Electric, JPMorgan and Royal Bank of Canada.

The fall in passenger demand since the start of the recession has knocked down the valuation for the London airport. Since the start of the airport's sale last September, passenger numbers have dropped by 17.7 per cent compared to March 2008.