P&O Agrees to $6.3B Takeover Offer

Thursday, January 26, 2006
The AP has reported that the Peninsular and Oriental Steam Navigation Co. said it has agreed to a $6.3 billion offer from Singapore port operator PSA International -- a switch of alliances that is likely to spark a bidding war for the 165-year-old British maritime icon. The approach from PSA trumped a 3.3 billion pound ($5.9 billion) cash offer from government-owned Dubai Ports World that P&O agreed to in November. P&O Chairman John Parker noted that the 470 pence ($8.40) per share offer from PSA, which would make the combined company the world's largest ports operator, was a 6 percent premium on the 443 pence ($7.91) offered by DP World. Shares in P&O were trading above both offers Thursday, up 1.8 percent at 516.25 pence ($9.22). PSA, which is wholly owned by Singapore's state-run investment firm Temasek, said an enlarged company would have the financial clout, scale and global network to compete effectively against rivals A successful takeover would see P&O Chief Executive Robert Woods remain with the group to run the British businesses and chair the struggling ferries division. Temasek is run by Ho Ching, the wife of Singapore Prime Minister Lee Hsien Loong. As owner of the Port of Singapore Authority, it is the second biggest ports group in the world. The company was tipped by analysts as a likely suitor for P&O because the combined operations would give it terminals at many of the world's busiest shipping lanes. The original deal with DP World, announced by both companies in November, would have made the combined company the third-largest ports operator in terms of capacity, lifting DP World up from its current rank as No. 7.
Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Fleet Growth Weighs on Product Tanker Earnings

Healthy returns enjoyed by the product tanker market in recent years are under threat as impending fleet growth is expected to reduce the sector’s earnings over the medium term,

Japanese Sub Pitch puts off Australian Firms

Japan had been seen as frontrunner for Australian submarine deal, but Australian defence firms unhappy after talks with Japan. A Japanese consortium eyeing a A$50 billion ($35.

Obama Pushes for U.S. Icebreakers

President Barack Obama on Tuesday will propose a faster timetable for buying a new heavy icebreaker for the U.S. Arctic, where quickly melting sea ice has spurred more maritime traffic,

Marine Materials

Polymer Serves an Array of Workboat Applications

Workboats are built for a diverse range of purposes, but they all share the need for trouble-free bushings and bearings. Answering this call, Vesconite offers a line of low-friction,

Liam Means Business for Shipping Cluster

Enterprising student Liam Finch has been putting his summer days to good use by working on an important survey for the Isle of Man Shipping Association (IOMSA).

Maersk's Blend-on-Board Project to Market Soon

The Danish shipping giant Maersk has decided to commercialise its new tech invention -  SEA-Mate Blend-on-Board - developed by the subsidiary Maersk Fluid Technologies (MFT), says Denmark's post.

 
 
Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1154 sec (9 req/sec)