AUSTRALIA'S Macquarie Bank is poised to team up with Spain's Grupo Ferrovial SA to launch a hostile bid for British airports operator BAA plc.

Investors kept faith today with the market rally that sent the FTSE 100 Index to a four-and-a-half-year closing high last night.

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