CP Ships’ shareholders agree to TUI offer

CP Ships’ shareholders agree to TUI offer    CP Ships shareholders, holding more than 66.6 percent of the ocean carriers shares, Tuesday accepted Hapag-Lloyd parent company TUI AG’s $21.50 per share offer.
   The number of shares deposited under the offer are being counted. Should the number of shares deposited be above 90 percent, TUI will mail Oct. 26 a notice of compulsory acquisition to the outstanding shareholders.
   If TUI has secured less than 90 percent of the shares, the German company said it will force a shareholder meeting to consider an amalgamation, by which TUI would acquire 100 percent of the CP Ships shares.
   TUI said it will announce details of the potential meeting shortly, and anticipates the amalgamation will be completed by Dec. 31 if required.
   TUI surprised the container shipping industry in August when it made its move for CP Ships, when most observers were predicting a takeover bid to come from elsewhere.
   APL, CMA CGM, China Shipping and Mediterranean Shipping Co. were all touted as potential buyers of CP Ships.
   Following TUI’s offer, CP Ships’ share price rocketed above that of TUI’s $21.50 per share offer as speculators gambled on a counter-bid materializing. In September, CMA CGM, the only other carrier to publicly admit its interest in CP Ships, declared it would not put a bid on the table.
   “By successfully acquiring CP Ships, we will transform our shipping division into a global player, and at the same time establish our group on a second, profitable base,” said Michael Frenzel, chief executive officer of TUI.
   Hanover, Germany-based TUI plans to combine Hapag-Lloyd’s and CP Ships’ operations, creating a fleet of 139 ships with a capacity of more than 400,000 TEUs, pushing the merged carrier into the top five ocean carriers in terms of fleet capacity.