P&O approach may spark bidding war

A multi-billion pound bidding war for P&O was on the horizon today following confirmation of a takeover approach for the ports and ferries operator.

The interest, which is thought to be from Dubai’s state-owned ports firm DP World, is expected to draw out rival moves, possibly from Denmark’s AP Moeller-Maersk and Hong Kong’s Hutchison conglomerate.

The Middle Eastern firm is understood to have contacted banks about financing a bid for P&O, which owns 27 container terminals around the world including Southampton and Tilbury in the UK.

Shares in P&O jumped 30% to 400p today as the historic UK company confirmed to the stock exchange that it had received a “very preliminary contact from a third party”.

The share price values P&O at around £3bn (€4.4bn).