BAA under threat if court rules against golden share
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BAA, the former British Airports Authority which runs Heathrow, Gatwick, Stansted and four other UK airports, could be open to a hostile takeover bid this week if the European Court of Justice decides to scrap "golden shares". These are shares held by governments that automatically carry as many votes as the rest of the company's shares put together, thereby blocking takeover attempts seen as being against the national interest.
BAA, the former British Airports Authority which runs Heathrow, Gatwick, Stansted and four other UK airports, could be open to a hostile takeover bid this week if the European Court of Justice decides to scrap "golden shares". These are shares held by governments that automatically carry as many votes as the rest of the company's shares put together, thereby blocking takeover attempts seen as being against the national interest.
When BAA was privatised in 1987, the government created a golden share and foreign holdings were not permitted to exceed 15 per cent.
The European Commission has taken the UK government to court over the issue, which it regards as anti-competitive. The case could have implications for other companies with golden shares, including BAE Systems, British Energy and National Grid. When they were privatised, they were all regarded of such strategic importance to the economy that the government retained a right of veto over any change in the controlling ownership. It has voluntarily relinquished golden shares in other organisations.
Other European countries have similar golden shareholdings as they sought to cash in on privatising state industries without ceding ultimate control.
In a preliminary judgment three months ago the European Court's advocate-general, Damaso Ruiz-Jarabo, said that the principle of a golden share was "contrary to the principle of free movement of capital".
BAA said: "In theory we could become vulnerable to a takeover bid, but in practice we are the largest private operator of airports in the UK and internationally, and we operate the airports in a very efficient way, so there wouldn't be much for a bidder to go for."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments