Merrill Lynch will learn this week whether it will become part-owner of London's City Airport after becoming the latest investment bank to bid for UK infrastructure assets.

The US bank is bidding alongside UK construction company Balfour Beatty as well as providing debt financing and mergers and acquisitions advice. Merrill Lynch and Balfour Beatty are among the bidders vying to make Tuesday's bid deadline for London City Airport, which is owned by Irish financier Dermot Desmond and could fetch up to £700m. Desmond acquired the airport from construction company Mowlem for £23.5m in 1995. A consortium led by Spanish builders Sacyr Vallehermoso and French insurer Axa also made the cut. Citigroup is advising a third group, made up of Canada's Vancouver Airport and Dutch bank ABN Amro. A fourth bidder is Frankfurt Airport operator Fraport. Merrill Lynch is backing Balfour Beatty's bid with its capital, as part of a new infrastructure initiative. Many of its rivals are raising third-party funds dedicated to infrastructure investments.