THE infrastructure arm of US banking giant Citigroup and Vancouver Airports Authority are planning a joint £2 billion bid for Gatwick airport.

The partnership is one of several planning to battle it out to buy London’s second-largest airport, which owner BAA has put up for sale. Five or six consortiums, made up of infrastructure funds and airport operators, are expected to emerge in coming weeks.

Manchester Airports Group is talking to a number of potential bid partners, including Goldman Sachs Infrastructure.

Banking sources believe that any consortium involving Goldman Sachs could also include Canadian fund Borealis, which owns Associated British Ports, and Ontario Teachers’ Pension Plan, which owns just under half of Birmingham airport.

The three parties were in the consortium that failed with a counter-bid for BAA in 2006 when it was bought by current Spanish owner Ferrovial for £10.3 billion.

Others expected to lead bids include German construction group Hochtief, Frankfurt airport owner Fraport, and Global Infrastructure Partners, which bought London’s City airport in 2006.

In 2007 Citigroup teamed up with Singapore’s GIC and HSBC to buy Kelda Water, owner of Yorkshire Water, for £3 billion.

BAA decided to sell the airport after a critical report from the Competition Commission.

The commission, whose final decision is out next year, said it should sell Stansted as well, but BAA wants to hold on to the airport.

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