DP World counters with $7 billion P&O offer
Dubai-state owned port operator DP World has reacted immediately to PSA International’s '3.54 billion ($6.3 billion) offer for P&O by entering a '3.9 billion ($7 billion) counter-bid.
DP World’s latest bid is equal to '5.20 ($9.25) per share, way over Thursday’s '4.70 ($8.36) per share offer from PSA.
In November, DP World made an initial '3.3 billion ($5.9 billion) offer, equal to '4.43 ($7.88) per share.
The P&O board has agreed not to adjourn next month’s shareholder meetings unless a third party makes a bid of over '5.46 ($9.71) per share.
The bidding war between the Singapore government controlled PSA and Dubai’s DP World has benefited P&O shareholders. P&O’s share price on Oct. 27, the last business day prior to the takeover speculation, was '3.03.5 ($5.39), some 79 percent less than '5.43 ($9.66) reached at 12.40 p.m. today on the London stock exchange.