TBI's Keith Brooks: "Valuable portfolio"

TBI shares slumped by one third in a week, earlier in August on news that bmi British Midland was to withdraw Heathrow and East Midlands services from Belfast International, a move which it is estimated will cut airport revenue by up to �6m a year.

Even though TBI owns eight airports, and manages services such as cargo handling and terminal operations at at least 19 more, the company is "a relatively small operator when measured by total passenger numbers", Vinci said.

Funding support

In the hands of Vinci, the world's largest construction firm by sales, and which boasts a market capitalisation of about 5bn euros, TBI would be able to "focus on larger investment opportunities", Wednesday's documents said.

"Vinci believes that TBI lacks the resources needed to achieve its stated objective of becoming one of the world's largest airport operators."

TBI last year failed in efforts to add Bristol and East Midlands airports to its portfolio.

"We did bid for both airports at prices which we believed would enhance value for shareholders," TBI said in March, announcing underlying pre-tax profits up 6% to �19.3m

"At that level our bids were unsuccessful. Shareholder value is, and will continue to be, an overriding acquisition criterion."

Valuable portfolio

But TBI chief executive Keith Brooks highlighted the value inherent in the portfolio the firm has built up since transforming itself in the past six years from a property firm into an airports operator.

"TBI owns an attractive and valuable portfolio of airport assets which are, by their very nature, scarce resources," he said.

Besides a majority stake in London Luton, TBI owns Belfast International and Cardiff International airports, Stockholm Skavsta in Sweden, three Bolivian airports and Orlando Sanford in the US.

French giant

Vinci already employs 7,000 people in Britain, through building firm Norwest Holst, the Ringway roads firm, and Vinci Park, the country's third largest car park operator.

Vinci units run both Severn bridges

Vinci divisions manage both bridges over the River Severn, have won a contract to run 3,000 public buildings in Liverpool, and were involved in the construction of buildings including the Sainsbury Wing of London's National Portrait Gallery.

The company was spun off in February last year from Vivendi, the former conglomerate which has merged with Seagram and focused on the media and entertainment markets.

City reaction

In the City, TBI shares closed on Wednesday at 99p, up six pence on the day.

While Vinci's offer equates to 90p per share, a 50% premium on the stock's value at the start of the week, investors have proved happy to buy at higher levels on hopes that rival bidders will emerge and raise the stakes.