Re: Dubai Ports World scuppers Singaporeans with 4bn pounds P&O bid



Its getting dizzy......

Without having to spending years of time and years of efforts to work for
it, the company is already making huge profit rise ...in that such huge sum
can never be able to make in even one or 10 years of business even in a
continuous rise in business volumn and profit.

A value 71% premium over the share price is astrominical.

There is a danger that PSA may go berserk offering beyond which P&O become a
burden to Singaporeans as it is the public money that the Govt is digging
into the reserves to pay for it.

If not where did they find so much cash in an instance.? If banks are to
supply the cash to pay for it, then the banks will be emptied in no time.





"amakeng" <ama@xxxxxxxx> wrote in message news:droha3$j7g$1@xxxxxxxxxxxx
> Dubai Ports World scuppers Singaporeans with 4bn pounds P&O bid
>
> Dubai's DP World delivered a potential knockout blow in the contest to buy
> the British ports group P&O last night, with a new offer worth 3.92bn
> pounds.
>
> The P&O board immediately recommended the 520p-a-share bid, having earlier
> yesterday backed a 3.5bn pound offer from the Port Authority of Singapore.
> That offer from PSA, worth 470p a share, had trumped an earlier agreed bid
> from DP World pitched at 443p a share last year.
>
> Nick LUff, the finance director of P&O, said the latest Dubai offer came
in
> yestereday afternoon and it was a "relatively easy decision for the board"
> to back it. He pointed out that DP World, whose chairman is Sultan Ahmed
Bin
> Sulayem, had already received all regulatory clearances for its deal.
>
> "This is a very attractive offer for our shareholders and it is about as
> deliverable as you can get," Mr. Luff said.
>
> The DP World bid comes at a hefty 71 per cent premium to the P&O share
price
> before its original approach. As both DP World and PSA are state-owned
> entities that want to acquire P&O for strong strategic reasons, normal
> financial considerations do not necessarily apply. So it is possible the
> bidding war is not over.
>
> Earlier in the day, some City sources had expressed surprise that PSA had
> not gone for a more aggressive bid, though analysts believed it had the
> capacity to increase its offer. DP World appeared to have pitched its bid
at
> a level calculated to try to deliever a killer punch.
>
> Investors, lead by hedge funds, had read the situation well, with P&O
shares
> closing at 522p yesterday, well before DP World announced its move.
>
> P&O, which owns ports around the world, is seen as the last independent
> player available in the sector. The industry is led by Hong Kong's
> Hutchison, with a 13 per cent market share, followed by PSA with 9 per
cent,
> Denmark's AP Moeller with 7 per cent and P&O with 5 per cent. So buying
P&O
> would enable PSA to leapfrog Hutchison to take the top slot.
>
> The acquisition of the 168-year-old P&O by DP World would make it the No.3
> player and thwart PSA's leadership ambitions. P&O has 29 ports, including
> key assets in the fast-growing Asian economies.
>
> A PSA-P&O deal would face some regulatory problems, especially at the port
> of Antwerp, which the combined entity would control almost completely. If
> the British company does end up with PSA, a break fee of 34m pounds would
be
> payable to DP World.
>
> P&O will now press ahead with a shareholder meeting scheduled for 13
> February, unless a competing offer worth 546p a share or more emerges. A
> victory for Dubai would be the second time it has beaten Singapore in a
bid
> battle. In 2004, DP World paid US$1.15bn for the global port assets of the
> US group CSX Corp, when PSA had reportedly bid US$1bn.
>
> The Independent - 7th Jan 2006
>
>


.

Quantcast