BAA Shares

the_greed

Received word about BAA takeover and was wondering whether to sell my shares or keep them, any advice would be welcome

ReportInvestor

The Ferrovial offer is for 950p per share. There was a competitive auction in which a Goldman Sachs led consortium also tabled a 955p offer too late.

The BAA share price on Friday was 928p.

Given the state of the market you have done exceptionally well. There is still a danger that the offer could fall through in volatile stock markets or that the airports regulator puts a spanner in the works, but I'd personally hold on for the 950p, unless I needed the cash immediately or could not afford the share price to slide.

Some more background on the bidding war on this link

brodev

Is there any advantage in taking the loan offer?

VeryTrying_2

ReportInvestor wrote:

... but I'd personally hold on for the 950p, unless I needed the cash immediately or could not afford the share price to slide.

Is it a question of 'holding on', or a question of sending the forms back this week? The offer's on the table and has to be accepted quickly, so I don't understand the reference to 'needing the cash immediately'.

Confused? I am!

ReportInvestor

brodev wrote:

Is there any advantage in taking the loan offer?

It is a way of avoiding an unplanned for capital gains tax bill if your capital gains in 2006/7 are going to be over £8K and you are facing unnecessary CGT @ 25% or 40% on those gains.

With no CGT considerations, I doubt people would choose to invest in such a vehicle.

Chrismaths

Loan notes are there in case you have already realised capital gains in excess of your £8,800 annual exemption. Otherwise they are of no use to you.

ReportInvestor was comparing selling your shares in the market now, or waiting for the money from Ferrovial. Although you might send in your acceptance of the offer now, you will not receive the money for probably a couple of months. However, considering you own 0.0000000000000000001% of the company (approximately ) you are unlikely to have much say in whether the deal goes through. Once Ferrovial have 90% acceptances, they can compusorily purchase your shares anyway.