BAA set for break-up

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The firm, owned by Spanish group Ferrovial, is being investigated by the Competition Commission, which publishes its "provisional findings" document at 7 a.m.

The regulator is widely expected to recommend a break-up after a preliminary study in April found that under a single owner there was no competition among some of its airports.

BAA, formed in 1965, owns the London trio of Heathrow, Gatwick and Stansted airports plus Southampton and three Scottish airports.

Its owner Ferrovial has come under fire from politicians and airline bosses for long queues and poor service at Heathrow and Gatwick in the past two years, culminating in the bungled opening of Heathrow's Terminal 5.

"We anticipate the review will propose a range of options, including a break up of BAA's monopoly," Collins Stewart transport analyst Andrew Fitchie said in a note.

Tougher regulation as called for by airlines including British Airways and easyJet could also be included, Fitchie said.

BAA Chairman Nigel Rudd told the BBC at the weekend he expected the review to recommend disposals and that it would not be a disaster of the company had to sell some assets.

The sale will help Ferrovial pay down some of the 8.97 billion pounds worth of debt it racked up to buy BAA in 2006 as part of its push to diversify out of construction.

Total debt at the end of last year stood at 30 billion euros, while Ferrovial shares have fallen 45 percent in the past 12 months and have underperformed European construction shares by 16 percent in that time. Worries over refinancing the debt, potential hitches at BAA and Spain's economic slowdown have weighed on the stock.

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