* GIP to buy Signature Aviation for $5.5/share
* Blackstone has proposed a $5.17/share bid
* Signature shares jump 9% to top FTSE 250 index
(Adds share move, background)
Jan 11 (Reuters) - An investment fund that used to own
London's Gatwick Airport has struck a $4.63 billion deal to buy
Bill Gates-backed private jet services firm Signature Aviation
, trumping rival suitors private equity giants
Blackstone and Carlyle.
Shares in Signature Aviation, which runs bases used by
private jets around the world, jumped 9% to top the UK midcap
index on Monday amid speculation of a counter bid.
"Nothing precludes either Blackstone and Cascade or Carlyle
from making an offer proposal that the board of Signature
Aviation will consider," a spokesman for Signature said.
Monday's deal with Global Infrastructure Partners (GIP),
which still manages a 49.99% stake in Gatwick on behalf of
investors, offers Signature shareholders $5.50 per share in
cash. That's higher than the $5.17 jointly proposed by
Blackstone and Signature's top shareholder Cascade Investment.
Signature's shares were last up 8.6% at 440.9 pence ($5.95).
While commercial airlines across the world are struggling
with COVID-19 travel curbs, private jet operators have fared
better as wealthy passengers switch to what is seen as a safer
way to fly, given the significantly lower passenger numbers.
Gates-owned Cascade, which holds 19% of Signature, last week
agreed to work exclusively with Blackstone on a joint
bid. They have until Jan. 14 to make a firm offer under UK
takeover rules.
Blackstone's agreement with Gates landed hours after
Signature confirmed an initial takeover approach from Carlyle
.
Blackstone did not immediately respond to a Reuters request
for comment on Monday, while Carlyle declined to comment.
Signature, formerly known as BBA Aviation, rejected an
approach from New York-based GIP last month, saying the price
was lower than the one outlined by Blackstone in its sixth
proposal. Blackstone's first proposal was in February last year.
Since the takeover interest was made public in December,
Signature shares have jumped more than 60% in value.
GIP, which owns Edinburgh Airport, plans to take Signature
Aviation off the London Stock Exchange if the deal goes through.
It used to own Gatwick but no longer has a direct stake
following a deal two years ago which saw France's Vinci Airports
take control of London's second largest airport.
($1 = 0.7414 pounds)
(Reporting by Indranil Sarkar and Muvija M in Bengaluru;
Editing by Saumyadeb Chakrabarty and Mark Potter)