DP World's New Bid Trumps PSA In P And O Takeover Battle

by Robin Pilgrim, LawAndTax-News.com, London

30 January 2006

Just days after switching its recommendation to shareholders away from accepting a DP World takeover bid to accepting a later offer by Singapore-based PSA, the board of ferries and ports firm, P&O has performed another U-turn in the light of a more attractive offer from DP World.

In a statement released mid-week, P&O recommended that the firm's shareholders accept the GBP3.54 billion bid lodged by PSA, announcing that:

"At completion of the Offer, the operations of P&O will be merged with those of the Offeror's parent, Singapore based PSA, creating one of the world's largest port operators."

However, in a statement released on Thursday, the P&O board reversed this recommendation, calling instead for its shareholders to accept DP World's new GBP3.88 billion bid.

"The P&O Directors have withdrawn their recommendation of the offer by PSA which was announced on 26 January 2006 and unanimously recommend that P&O Stockholders vote in favour of the Revised Proposals at the Meetings which are now scheduled to take place on 13 February," the statement announced.

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