Macquarie Airports rejects management offer

Macquarie Airports has rejected a proposal to transfer control of the company to external executives, and will instead continue with its plan to internalise its management.

An investor group led by fund manager Mike Fitzpatrick proposed to transfer management of the company to a group of airline executives sourced from throughout the industry.

But board chairman Trevor Gerber has summarily rejected the proposal.

“You propose to risk breaching the bank change of control clauses with Map security holders bearing all the risk and you carrying no risk,” he wrote to the group.

He added that the proposal appeared to be “a job application for three people who the Board does not know for positions that are not vacant with a cost of [at least] $45 million.”

Macquarie intends to bring control of the company in-house by buying ownership from its former parent for $345 million.