Spanish construction group Ferrovial has accused BAA of failing to meet its targets and using "highly questionable valuation assumptions" after the UK airport operator rejected a sweetened £9.7bn (€14.2bn) takeover bid.

Ferrovial said this morning that BAA yesterday rejected a revised offer worth 900p per share. The offer, which Ferrovial announced to the market "given the unwillingness of the BAA board to engage with the offeror", is 11% higher than the Spanish group's initial hostile offer of £8.75bn.