Airport operator BAA, has pledged to hand 拢750m back to its shareholders as part of its defence against a hostile takeover from Spanish contractor Ferrovial.

In statement released on Monday, BAA said it would be shortly sending out a letter to shareholders outlining its plans to return the capital, which would be conditional on the firm beating off a bid from Ferrovial, or any other firm.

The BAA board has already rejected Ferrovial's 810p-a-share offer for the company, which values it at 拢8.75bn, on the grounds that it undervalues the company.

Investment bank Goldman Sachs has indicated that it is considering making an offer for BAA of 870p-a-share, valuing the company at 拢9.4bn. However, no bid has materialised and BAA has made it clear that should a bid be forthcoming it would be rejected.

Shares in BAA fell by 1.5% when the announcement was made on Monday, but recovered on Tuesday to close at 836p.