Sydney Airport willing to hold talks with its rejected suitors

Sydney Airport said it’s willing to hold talks with a group of suitors over a higher takeover bid, as it rebuffed a small sweetener that edged up the consortium’s offer to A$22.8b ($16.8b). The airport said Monday it’s “open to engaging” with the group if the bidders are prepared to make a proposal that reflects “long-term value.” At the same time, Sydney Airport rejected as too low the revised offer of A$8.45 a share, which was a 2.4% increase on the initial bid. After being hammered by coronavirus restrictions that have decimated airlines and tourism, Sydney Airport is clinging to hopes that vaccination rollouts around the world will allow global travel to resume. But the outlook has darkened since the airport rejected the suitors’ first approach last month. Much of Australia has been thrust into lockdown as authorities struggle to contain a breakout of the delta variant. That’s delaying any aviation recovery and increasing the financial pressure on Australia’s biggest travel hub. Sydney Airport said Monday the latest offer from suitors including IFM Investors -- an infrastructure investor owned by 23 Australian pension funds -- was “opportunistic in light of the Covid-19 pandemic.” It said an acceleration of Australia’s inoculation program in recent weeks offers a pathway to a resumption of travel. Still, the airport’s acknowledgment that it’s willing to entertain a higher offer -- at an unspecified value -- represented a softening of words since it rejected the A$8.25-a-share bid in July.<br/>