BAA bondholders win covenant concession after takeover bid

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Bondholders who had agreed to buy EUR2.85 billion of UK airports operator BAA bonds which went on sale on February 2 have managed to force the company to include a change-of-control provision in the bonds. Investors threatened to pull out of the transaction after Spanish construction firm Grupo Ferrovial's proposal to bid for the airports operator raised fears of BAA taking on additional debt after a leveraged buyout.

Bondholders formed a committee of up to 50 institutional investors and sent a l

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