CP Ships in “possible transaction” talks

CP Ships in “possible transaction” talks

CP Ships in “possible transaction” talks

   U.K.-based CP Ships Ltd., has confirmed it is “in discussions regarding a possible transaction.” The carrier would not disclose if the “transaction” refers to its sale or an acquisition.
   “There is no assurance that a transaction will result from these discussions and no further comment will be forthcoming unless the situation warrants,” CP Ships said in a statement.
   The Toronto Stock Exchange requested that the Canadian-registered company make a statement following industry rumors that the carrier is preparing itself for a takeover.
   In May, CP Ships’ stock price on the New York Stock Exchange soared 11 percent during four days trading following stories that China Shipping Container Lines was interested in acquiring the company. Commenting on those rumors at the time, Ray Miles, CP Ships’ chairman and acting chief executive officer said: “I have not talked to them for years.”
   These rumors intensified when CP Ships said in April it had decided to end its multiple brand strategy and stop using historical names such as Lykes, Canada Maritime and ANZDL later this year, making it easier for any potential suitor to integrate the CP Ships network into its operations.
   The imminent takeover of P&O Nedlloyd by A.P. Moller-Maersk has also had industry tongues wagging over more takeovers or mergers. Miles played down the prospect of a chain reaction of takeovers within the industry when he addressed a New York meeting of investment analysts in May. Including A.P. Moller and P&O Nedlloyd he said: “There would be only four or five in the top 20 that would be candidates' to takeover another carrier.
   On the flip side, CP Ships said in February it was on the lookout for potential acquisitions, and was building a war chest for future takeovers. “At the moment, we still consider it to be sensible to preserve some substantial firepower as we may well be entering, at some time in the next couple of years, an industry downturn,” Miles said at the time.
   French carrier CMA CGM, has obvious cultural advantages with the Canadian quoted CP Ships, and along with China Shipping, has grown rapidly in the last few years.