Cardiff airport handles 1.5m passengers a year

The airports group initially rejected the offer, worth �517m, but soon changed its mind when it became clear that the air travel industry faced going into freefall following the suicide-hijack bombings of New York and Washington DC.

But Vinci has used a technicality in the offer process to walk away from the deal even though it would have given the firm its first foothold in the UK airport market.

Vinci said a key condition of the offer had not been met.

It said it had not received enough valid acceptances from TBI shareholders - only 84% of the TBI share base to which the offer related instead of the required 90%.

In a statement issued after the Monday evening deadline had passed, the company said: "As this condition has not been satisfied, Vinci has decided to allow the offer to lapse."

The Broughton plant builds A380 wings

Vinci has declined to discuss its reasons for letting the offer lapse but sources close to the group said the 90p-per-share bid was deemed too expensive after the US attacks, which have hit the airline industries hard.

In addition to Cardiff International Airport, TBI operates London's Luton airport and Belfast International Airport as well as Skavsta airport in Stockholm, Orlando Sanford airport in Florida, and three airports in Bolvia.

It also supplies services for other airports.

There has been speculation since September 11 that Vinci would pull out of the deal it had pursued strongly throughout the year.

The worsening crisis in the sector has led British Airways to cut around 7,000 jobs and withdraw 20 aircraft from service, while Virgin Atlantic is axing 1,200 positions.

Job cuts

The BAE Systems plant in Broughton, Flintshire, which builds wings for the new European A380 Airbus, has now been told the company is freezing recruitment.

The factory is in the process of recruiting 1,700 more workers to handle the contract, but bosses have said the positions are safe for the time being and new contracts for other construction elements are still being added.

Vinci has its UK head office in Watford and employs around 7,000 people in the UK on a range of projects including a Cardiff-based PFI deal and a contract to maintain the bridges on the River Severn.

However, it does not have a presence in the UK airport sector, despite having interests in airports around the world.