P&O Group’s shares rocket, 64.2% higher than pre-speculation
Following news of PSA International’s '3.5 billion ($6.2 billion) takeover approach, shares in the ports and ferries group P&O rocketed 6.2 percent, or by 29.5 pence (52 cents), to '4.98.5 ($8.80) at close of trading Wednesday on the London stock exchange.
Speculators are sensing a potential bidding war for P&O between PSA and Dubai state-owned port operator DP World, who had a '3.3 billion ($5.8 billion) offer accepted by the P&O board in November. P&O’s share price on Oct. 27, the last business day prior to the takeover speculation, was '3.03.5 ($5.36) some 64.2 percent less than yesterday’s closing price.
In a related development, Schroder Investment Management Ltd. has withdrawn its initial commitment to sell its 52.3 million units of P&O deferred stock to DP World. DP World said it now only has shareholder commitments to accept its offer covering 65.4 million units, or approximately 8.7 percent of P&O’s issued deferred stock.
P&O Group’s shares rocket, 64.2% higher than pre-speculation
