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Dubai Wins P&O Bid Battle
01 Feb 2006
DP World's second offer of 520 pence per share saw its rival, the PSA Corporation of Singapore, withdraw from the bidding unwilling to value P&O higher than its earlier 470p offer. DP World's unsolicited offer of 443p offer last November had initiated the bidding.
An extraordinary general meeting of P&O shareholders on 13 February voted overwhelmingly to accept the DP World offer, with more than 99% in favour.
The acquisition, which is due to be finalised by the middle of next month, will move DP World into third position among the globe's largest terminal operators behind Hong Kong's Hutchison Whampoa and PSA. PSA's entry into the bidding resulted in DP World paying some 17% more than its original offer, a factor which could limit the victor's scope for cutting prices.
MJ Information No: 21537
