Forth ports in spotlight after stake building

The owner of seven commercial UK ports attracted takeover speculation today after it was confirmed an Australian firm held 20% of the company.

The interest in Forth Ports involves funds controlled by Sydney-based Babcock & Brown, which is already the third biggest ports operator in Europe after its £260m (€343m) acquisition of PD Ports in 2006.

Forth’s share price jumped 5% today after the Sunday Times said the swoop could lead to a takeover bid for Forth.

Shares have risen 10% over the previous three months amid rumours that Babcock was plotting a £1.1bn (€1.45bn) approach for Forth, which is seen as an attractive target because of its steady cashflows in a time of economic uncertainty.

Forth said the stake-building demonstrated Babcock’s recognition of Forth as a “unique company and as an attractive investment with excellent prospects”.

The group owns and operates seven commercial ports in the UK – Tilbury on the Thames, Dundee in the Firth of Tay and five in the Firth of Forth – Leith, Grangemouth, Rosyth, Methil and Burntisland. It also operates out of Chatham in Kent under the Nordic banner.