The bid follows closely behind the failed bid of another Singapore Government backed agency, the Port of Singapore Authority, to acquire P&O Ports.

Following a brief bidding war, P&O was sold to the Dubai Government backed Dubai Ports World for £3.9bn.

ABP, which owns and operates 21 ports around the UK, has been resurgent since a new management team led by Bo Larenius took over six years ago. The underperforming group then focussed on its core UK ports business, selling non-core activities and non-essential property while investing steadily in port facilities. The results have been remarkable, with ABP shares rising from 265 pence in February 1999 to the 730 pence valuation made by the bidding consortium.

The consortium is expected to have to pay at least 800 pence per share to acquire ABP.

However, legislation announced in the recent UK Budget allows tax-free vehicles to be set up to own property assets. Analysts at Arbuthnot Securities estimate a fair value for ABP at 885 pence per share, a figure which could rise to 1,000 pence per share if it split itself into an operating company and a property company.

MJ Information No: 21730