Ferrovial puts 10 percent of Canada's ETR on sale

MADRID (Reuters) - Debt-laden Spanish infrastructure giant Ferrovial FER1.MC said it has put 10 percent of its 407-ETR motorway in Canada up for sale and will use the proceeds to invest in new toll road projects and pay down debt.

Ferrovial, which also owns British airports operator BAA, said it had hired RBC Capital Markets RBCI.PK to act as financial adviser for the deal.

"We have decided to approach the market in order to sell part of our stake in 407 ETR; however, the final decision will depend on the value of the offers we receive," Ferrovial said in a statement late on Thursday.

"The process is part of our asset rotation policy and is in response to interest expressed by various investors," it added.

Analysts value the 10 percent stake at about 500 million euros ($684 million). A Ferrovial spokesman declined to provide a valuation for the 108 kilometer (67 miles) bypass around Toronto. The road averaged 370,000 trips per day on weekdays in 2009.

The consortium headed by Ferrovial obtained a 99-year concession for 407 ETR in 1999. It controls 52 percent, while partner Intoll has 30 percent and SNC-Lavalin Inc 16.8 percent.

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(Reporting by Tracy Rucinski and Andres Gonzalez; Editing by Leslie Gevirtz)