Ferrovial faces continued uncertainty

By Tracy Rucinski - Analysis

MADRID (Reuters) - Spanish builder Ferrovial is facing fresh uncertainty after a ruling by British competition authorities that it must sell three of its seven UK airports.

The Competition Commission's ruling on Wednesday came just two days after Ferrovial finalised a 13.3 billion pound refinancing deal, which had been hanging over the builder's share price since it acquired the airports operator in 2006.

Ferrovial's shares rose by as much as 3 percent in early trade as market players welcomed news of asset sales for the debt-ridden constructor, but closed in the red as concerns over a prolonged sale process began to weigh on sentiment.

"There are people looking to buy airports, but they're not going to be willing to pay the price that Ferrovial paid," Collins Stewart analyst Andrew Fitchie said.

Ibersecurities analysts said Gatwick could fetch between 2.5 billion euros and 3.8 billion euros (1.9 to 3 billion pounds), but noted that Ferrovial has touted a 4.7 billion euro price tag. Stansted is seen fetching some 2.5 billion euros.

But in addition to 17 billion euros in debt, BAA also has significant investment commitments in its London airports over the next ten years.

Frankfurt operator Fraport and German builder Hochtief have expressed interest, while Australia's Macquarie Group said on Wednesday its airports fund would not be chasing any upcoming airport sales.

"It's not a good time for highly-geared companies in the infrastructure sector," a Madrid analyst said.