Desmond ruled out as mystery airport bidder

Mr Dermot Desmond has been ruled out as the mystery bidder for TBI, the Cardiff-based airport operator, which said yesterday that it had received an unsolicited takeover approach from an unnamed third party.

A bid from Mr Desmond - who owns London City Airport - had been mooted since he bought just under 4 per cent of TBI in March.

Sources close to the company said yesterday that the Irish businessman was not involved in the current talks although the third party involved is believed to be from outside Britain. A spokeswoman for Mr Desmond and IIU, his investment company, said that they had no comment to make on TBI's statement.

If TBI is taken over, Mr Desmond still stands to make a handsome profit on his investment. He is understood to have bought his shares at around 60p sterling and could make as much as £5.6 million sterling (€9.25 million) on his 18.6 million shares.

TBI shares rose almost 14 percent to 90p sterling yesterday but fell back later in the day. The airport group made the announcement about the takeover approach at its annual general meeting in Cardiff.

"The board confirms that it has recently received an unsolicited approach from a third party. This approach is very preliminary in nature," said the company in a statement.

Mr Stanley Thomas, the chairman of TBI told shareholders that the company was trading in line with expectations.

Passenger numbers at Belfast Airport were up 5 per cent in the first three months of the year and cargo volumes were up 30 per cent following completion of a 20,000 square foot facility for City Link, the freight forwarding group, he said.

Further increases in passenger numbers at Belfast Airport are expected when EasyJet, the low cost carrier, increases the frequency of its Belfast to Liverpool flights from three to six flights a day. The airline is also planing to up the number of its Belfast to London Luton flights from 4 to 5 a day.

TBI also operates airports in Cardiff, Sweden and Orlando Sanford, Florida.

Mr Thomas said the group was now a highly focused owner, operator and manager of regional airports. It was now looking to dispose of its interest in airports where it was unlikely to become the principle operator.

"We continue to examine opportunities to make further airport acquisitions which meet our usual strict criteria in our core territories of Europe and the Americas," Mr Thomas said.

Mr Desmond bought London City Airport and some surrounding land in 1995 for £26 million.