Hochtief, a German construction giant, has withdrawn their bid from the £2 billion auction of the Gatwick Airport, which is owned by the British Airports Authority, only leaving 5 bidders entering the second round. Analysts think that bids for the airport, which is the second largest airport in Britain, may increase to as much as £2 billion, even though others in the industry question if it will get that high amid the current credit crisis.

Robert Crimes, a Credit Suisse Group analyst, said on January 19^th that the sale of the Gatwick Airport would generate nearly £2 billion for the British Airports Authority, who is owned by Ferrovial of Spain, which will boost the stock of the company by 8% at most. It is thought by some, however, that the tougher economic climate may mean that achieving a premium to the Regulate Asset Base of £1.7 billion will be difficult.

The first round of bids on the Gatwick Airport were due last week. Two bidders are said to be the infrastructure arm of 3i with the Canada Pension Plan and the Ontario Teachers’ Pension Plan as partners and Canada’s Borealis is bidding with Manchester Airports Group.

There are also 3 other groups who have shown an interest in bidding on the airport, including: Global Infrastructure Partners, owner of London City Airport; the infrastructure funds of Babcock & Brown and Deutsche Bank; and a consortium that includes John Hancock Life Insurance Company, Citigroup Infrastructure, and the Vancouver Airport.

No comments were given from either Stuart Butchers, a British Airport Authority spokesman, or Donatella Gasser, a Hochtief spokeswoman.

Find out more about the airport at: www.gatwickairport.com