Bidders line up for City Airport

The battle for London City Airport was hotting up over the weekend amid reports Toronto-based pension fund Borealis Infrastructure and German insurance group Allianz have submitted a joint bid for the site.

The Sunday Telegraph said it understood the two companies had once again joined forces in the bidding war, which will see them compete against a partnership between Ontario Teachers' Pension Plan, Hermes and the sovereign wealth fund of Kuwait.

The airport, which is expected to fetch as much as £2bn following strong growth in recent years, was put on the market at the beginning of August by its owner, private equity firm Global Infrastructure Partners.

Borealis, which joint owns the London-Channel Tunnel rail link, and Allianz has previously teamed up for projects in the past, most recently acquiring motorway services chain Tank & Rast.