"Construction could have been a lot worse. Overall results were a bit better than expected at the operating level, largely thanks to a surprisingly good performance from airports," an analyst in Spain said. BAA and Cintra posted nine-month results broadly in line with forecasts on Wednesday and flagged steadying traffic at airports and highways. Join discussion...

The long-awaited break-up of the UK’s biggest airport group began on Wednesday after BAA reached an agreement to sell Gatwick to the owners of London City Airport for £1.5bn. The sale to Global Infrastructure Partners, which was approved late on Tuesday night by the Competition Commission, ends a tortuous process that started a year ago when BAA, a subsidiary of Spain’s Ferrovial infrastructure group, put Gatwick up for sale in an attempt to head off competition concerns about its market dominance. Join discussion...

Grupo Ferrovial SA, the Spanish construction group, plans to refinance about 3.3 billion euros ($4.4 billion) of loans this month, including debt used to buy BAA Airports Ltd., said three people familiar with the deal. Ferrovial is offering higher interest of 200 to 300 basis points over benchmark rates on the new loans, said the people, who declined to be identified because the talks are private. The margin compares with 65 basis points on a 1.5 billion-euro loan agreed in 2006 to finance the takeover of London-based BAA, according to data compiled by Bloomberg. Join discussion...

Grupo Ferrovial SA is offering banks a higher interest margin on about 1.58 billion euros ($2 billion) of loans used to finance the takeover of London-based BAA Airports Ltd., according to two people with knowledge of the deal. Join discussion...

Grupo Ferrovial SA may get less than 500 million pounds ($720 million) if it sells a 15 percent stake in U.K. airport operator BAA Ltd. as other asset disposals in the market depress prices, Credit Suisse said. Join discussion...

Deutsche Bank's (DBKGn.DE) RREEF Infrastructure and a European infrastructure fund run by Babcock & Brown (BNB.AX) have made a joint first-round bid for London's Gatwick airport, a spokesman confirmed on Tuesday. Join discussion...

Bidders believe they can improve the operational efficiency of the airport, but bids are expected to be depressed both by the problems of finding sufficient debt finance and the cost and terms of the debt, as well as by falling passenger traffic. Join discussion...

Ferrovial, the Spanish construction group that owns 56pc of BAA, must lead a refinancing of £1.55bn of subordinated debt, currently trading at only about 60p in the pound. The debt must be repaid by May 2011 – a tight timeframe given the carnage in the credit markets. Join discussion...

The disposal of the second largest UK airport will begin with the issuing of an information memorandum to potential bidders and a timetable for the sale, which is expected to call for first indicative bids in the third week of January. Join discussion...

Spanish constructor and airport manager Ferrovial would merge with sister company Cintra through a share swap rather than a buyout, Expansion reported, citing unnamed sources close to talks. Join discussion...