Bidding war looms over P&O
The prospect of a multi-billion euro bidding war for ports and ferries group P&O was fuelled today by reports that a second firm was considering an offer.
P&O received a bid approach last weekend from a party thought to be Dubai Ports World (DPW) which sent its shares soaring 30% to a five-year high of 400p.
According to reports today, the Singapore government’s investment arm Temasek has now hired advisers to explore a potential counter-bid for P&O.
The emergence of a second possible bidder could lead to an aggressive auction breaking out for P&O. Shares closed on Friday at 434p, valuing the company at £3.3bn (€4.8bn).
Temasek already owns the world’s second biggest ports group, the Port of Singapore Authority, and is considered the most ambitious of P&O’s larger rivals.
Other potential bidders thought to be interested include Hutchison Ports – the world’s largest operator and part of Hong Kong-based conglomerate Hutchison Whampoa – and Denmark’s AP Moller-Maersk.
According to the Sunday Telegraph, P&O is expected to open formal talks with DPW within the next two weeks. DPW is state-owned by the Dubai Ports, Customs and Free Zone Authority.
P&O is also said to be set to win firm approval for a £1.5bn (€2.22bn) container port at Shell Haven in the Thames Gateway as soon as Christmas.
It already owns 27 container terminals around the world, including Southampton and Tilbury in the UK, but the new deep-sea port at Shell Haven could make up 10% of its ports capacity.
Last week it sold its cold logistics business for £183bn (€271bn) to Canada’s Versacold Holdings.
