Investors hoping for a takeover of Sydney Airport Holdings Pty Ltd (ASX: SYD) might be cursing the recent rally in its share price.
The consortium of infrastructure investors – dubbed the Sydney Aviation Alliance – that's been futilely bidding for ownership of the airport reportedly might need to increase their bid price to $9 per share.
This follows Sydney Airport stock's recent 18 cent gain.
The rally was seemingly triggered on 26 August when Qantas Airways Limited (ASX: QAN) announced its planned return to international travel. Over the 10 trading days following Qantas' announcement, Sydney Airport's stock moved to finish last week trading at $7.93.
However, the Sydney Airport share price is slipping today. It's currently $7.81, 1.51% lower than its previous close.
Let's take a closer look at today's news of Sydney Airport.
Image source: Getty Images
Has the final hammer fallen for the alliances' takeover?
The recent Sydney Airport share price rally might have been detrimental to Sydney Aviation Alliance's hopes to control the airport. However, bids may be back on the table following today's share price drop.
Reporting by The Australian stated the airport's previous gains might have seen the alliance tap out.
The Sydney Aviation Alliance put forward a bid to buy 100% of Sydney Airport's stock in July, offering $8.25 a share. After its offer was rejected, it upped its bid to $8.45 apiece. Again, the airport denied the bid.
It stated both bids undervalued the airport and were taking advantage of COVID-19's impact on travel.
According to The Australian, the alliance may have needed to up its bid to $9 per share to gain the airport's acceptance.
It seems Sydney Airport's gains might have been bad news for investors hoping the takeover will eventuate.
One such investor may have been UniSuper, which holds a 15% stake in the airport. UniSuper has agreed to vote in favour of the takeover if it can reinvest its holding into the alliance.
Yet market watchers looking at the Sydney Airport share price rally with trepidation will likely be feeling hopeful this morning.
Sydney Airport share price snapshot
Today's fall included, the Sydney Airport share price has gained 21% year to date. It is also 33% higher than it was this time last year.
