11.12.05
The Hungarian government and UK airport operator BAA, the top bidder in the tender for Budapest Airport, may sign a contract early next week, Hungarian daily Magyar Hirlap reported today.
BAA, owner of London's Heathrow airport, topped the bidding to buy Budapest Airport on Thursday with an offer of 464.535 billion forints (£1.26 billion). BAA's offer beat Germany's Hochtief and Frankfurt airport operator Fraport, but the Hungarian privatisation agency APV said the tender would remain open until negotiations finished and a contract was signed.
Magyar Hirlap said, citing unnamed sources, that Hochtief's offer was 400 billion forints, while Fraport offered 360 billion. A source close to the deal told Reuters earlier that Hotchtief's bid was a close second, but Fraport's offer was a distant third.
BAA's offer for a 75% minus one share stake in the airport is 38 times Budapest Airport's 2004 pre-tax profit. Finance Minister Janos Veres said the winner would pay in one lump sum and was expected to pay before the end of the year. He added that the purchase price would be converted by the National Bank of Hungary and not via the interbank market.
