British firm declines Dubai offer as PSA pays 6pc more and agrees to satisfy any regulatory demands
Singapore's PSA International yesterday bid GBP3.54 billion ($49.07 billion) for Peninsular and Oriental Steam Navigation (P&O) in a move unanimously recommended by the venerable British firm's board.
The bid, which would see PSA replace Hutchison Whampoa as the world's No1 container terminal operator by volume, trumped by 6 per cent an offer made late last year by Dubai Ports World (DP World) and set the stage for a bidding war between the state-owned firms.
The P&O board withdrew its backing for the earlier DP World offer. The new offer is conditional and is pending shareholder and regulatory approvals.
'I strongly believe the combination of PSA and P&O will create the strongest business platform,' PSA chairman Fock Siew Wah said yesterday. 'We will have an enlarged port group that will have the financial resources, scale and global connectivity to compete more effectively in the marketplace.'
DP World sources responded to the PSA bid yesterday by reaffirming their determination to buy P&O and are expected to make a counter-offer. The PSA offer, which equates to 470 pence per share against 443 pence from DP World, was widely expected after PSA on January 9 approached P&O with a potential offer that mirrored yesterday's bid.
Nevertheless, each new round in the ensuing heavyweight battle between the well-funded firms is destined to hold industry watchers spellbound.
