Battle looms as TBI rejects Vinci offer

A bid battle looked set to break out yesterday for TBI, the regional airports group, after the French construction giant Vinci launched a hostile takeover bid, valuing the group at £516m.

TBI's board unanimously rejected Vinci's "opportunistic" offer, adding that the bid had sparked interest from other parties.

Keith Brooks, TBI's chief executive, said he was taking the approaches seriously. He refused to be drawn on whether they were from other trade buyers or venture capitalists. He said: "The board intends to consider these [approaches] seriously, with a view to maximising shareholder value."

TBI, which owns Luton, Belfast International and Cardiff International airports, urged shareholders to "take no action" until Vinci had published its formal offer document.

Vinci, run by chairman and chief executive Antoine Zacharias, snapped up a 14.9 per cent stake in TBI on Monday. The French group said: "[They] have in effect put themselves up for auction, clearly demonstrating that they don't see their future as an independent one."

TBI's shares leapt 6 per cent to 99p on hopes of a counterbid or an improvement on Vinci's 90p-per-share offer.

Jerome Tolot, Vinci's general manager, said the offer was "fair and generous", adding that it represented a 50.6 per cent premium to TBI's closing price on 13 August. He expected to file Vinci's offer document within a couple of days.

Mr Brooks attacked Vinci's offer level for "not reflecting underlying value", hinting that the group, which includes airports in Sweden, Bolivia and the US, was worth closer to £700m.

He said: "Who knows what Luton will be worth once we conclude the easyJet deal...but Belfast and Cardiff are worth £500m alone. [Yesterday's] reaction from the market supports our view."

Mr Brooks denied that the Financial Services Authorities, the main City watchdog, had approached TBI in relation to share dealings by two of its non-executive directors this month. Charles Scott and Timothy Simon bought nearly 80,000 TBI shares between them shortly after the group issued a profit warning on 3 August. This was after TBI had received and rejected an initial bid approach from Vinci.

Analysts predicted that a successful bid would have to top 100p-per-share. TBI was approached last year by a suitor rumoured to be prepared to pay around 120p-per-share although no formal offer emerged.

Vinci, which was formed after the merger last year of the construction interests of Vivendi Universal and Suez Lyonnais des Eaux, said it wants TBI to balance its portfolio, which is heavily weighted towards construction. Vinci has 26 airport concessions around the world.