PandO announces bid talks

LONDON – The biggest British ports and ferries group PandO said yesterday that it had been approached by a third party concerning a possible approach for the group, following weekend speculation.

“PandO confirms that it has received a very preliminary contact from a third party, which may or may not lead to an offer for the company,” it said in a brief statement which did not name the suitor. Without citing its sources, The Sunday Times had reported that PandO would face a three billion-pound (N$36 billion) takeover bid this week from its Middle East rival Dubai Ports World (DPW).DPW has hired Deutsche Bank to advise it on a bid and a meeting between the two sides is likely in the next few days, the newspaper had reported.According to the paper, an approach to PandO by DPW would spark a bidding war, with Singapore investment firm Temasek and Danish shipping group AP Moeller-Maersk among those likely to show interest.Founded in 1837, Peninsular and Oriental Steam Navigation Company (PandO) is the biggest British port operator and the fourth biggest in the world, running 27 container terminals around the world, including two in Britain and logistics operations in 18 countries.Its port operations are highly profitable but it has made heavy losses in recent years on its ferry lines.It closed 13 of these lines in 2004 and this year sold its 25-per cent stake in the shipping firm PandO Nedlloyd to A.P.Moeller-Maersk.-Nampa-AFPWithout citing its sources, The Sunday Times had reported that PandO would face a three billion-pound (N$36 billion) takeover bid this week from its Middle East rival Dubai Ports World (DPW).DPW has hired Deutsche Bank to advise it on a bid and a meeting between the two sides is likely in the next few days, the newspaper had reported.According to the paper, an approach to PandO by DPW would spark a bidding war, with Singapore investment firm Temasek and Danish shipping group AP Moeller-Maersk among those likely to show interest.Founded in 1837, Peninsular and Oriental Steam Navigation Company (PandO) is the biggest British port operator and the fourth biggest in the world, running 27 container terminals around the world, including two in Britain and logistics operations in 18 countries.Its port operations are highly profitable but it has made heavy losses in recent years on its ferry lines.It closed 13 of these lines in 2004 and this year sold its 25-per cent stake in the shipping firm PandO Nedlloyd to A.P.Moeller-Maersk.-Nampa-AFP