Private equity firm in BAA link

Speculation surrounding BAA increased today after a report said a private equity group was working on a possible bid for the airports operator.

Star Capital Partners – best known for an unsuccessful £3bn (€4.4bn) offer for the former Anglian Water Group – is said to be eyeing up an approach for the owner of Heathrow, Gatwick and five other sites.

Like Spanish infrastructure firm Ferrovial, which announced its interest on Wednesday, Star Capital is unlikely to attempt a takeover of BAA on its own. It is not known if the two groups are working together on an approach.

The Times said preparations for the move from Star Capital were at an early stage and that the company – headed by former Invensys chief executive Rick Haythornthwaite – has yet to make a formal approach to BAA.