PSA Clinch P&O Deal
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No more counter bids lah.
You didn't follow the news mah. -
Latest news.
PSA may still launch last-minute counter-offer for P&O: analysts
SINGAPORE : It is just days before shareholders of the British ports and ferries group P&O meet to vote on a takeover offer from Dubai Ports World.
And analysts tell Channel NewsAsia that it is still too early to write off a last-minute challenge from Singapore port operator PSA.
In fact, some believe that the real bidding war is only just about to unfold.
After Dubai Ports World returned to the table with a new offer that was higher than PSA's, there was talk that a bidding war would break out for P&O.
So far, though, PSA has yet to make its next move,and there is talk that it might in fact throw in the towel.
Some argue that it would be impossible for PSA to outbid Dubai Ports.
But as Monday's deadline nears for P&O shareholders to vote on the Dubai offer, other analysts believe the real bidding war is only about to begin.
They say P&O is an opportunity too good to let go.
Priya Gupta, Associate Director-Corporates, Fitch Ratings, said, "P&O is a unique asset and they have a well-diversified mix of both the developed and developing world assets.
"So if you look at the portfolios held by the rival bidders, PSA and DP World, you will see the portfolio ports held by P&O, it's largely complementary to the portfolios of the rival bidders."
She added, "In business terms there's great strategic value to P&O's assets, and we think it is net positive to the businesses of either DP World or PSA. But in financial terms, it is a large transaction, in the region of 3.5 billion pounds.
"And the financial implications would really depend on the eventual financing structure and the level of pressure it brings to bear on the financial profile of the ultimate acquirer."
While the P&O board has made its recommendation based on price, some say the strength of the bidding company is a key factor to consider.
Roger Tan, Investment Analyst, SIAS Research, said, "The target company will usually look at a few other points. One, is that the management that is taking over the company has a good track record. Two, when the management comes in, whether their corporate culture would gel with the target company's corporate culture. Last but not least, whether the management that is coming in would be able to add value to the firm after taking over. So price is not the only major consideration."
A tie-up between P&O and PSA would create the world's largest ports group.
PSA has not disclosed how it plans to finance the P&O purchase, and there are concerns it may take on too much debt.
Dubai Ports, on the other hand, is reported to have issued a US$3.5 billion Islamic bond last month to fund the deal. - CNA/ms
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/192243/1/.html -
If PSA is going for it, they will definitely do it very close to the date line.
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What PSA can do is a reverse takeover of the company and acheive a backdoor listing. This move could thwart DP plans to buy over P&O as P&O shareholders could possibly want to own a share of PSA.
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The deal is off, PSA lost...again!!
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Dubai is too hungryOriginally posted by Gazelle:The deal is off, PSA lost...again!!
But if you look at the counterbid price DP World is paying now, it is way too high. Many P&O ports volume is simply much much lower -
The game is not over yet.
ARABS NEED NOT REPLY---Sens. Hillary Clinton of New York and Robert Menendez of New Jersey said they will file legislation prohibiting companies owned or controlled by foreign governments from purchasing port operations in the United States, citing national security dangers. The bill targets the sale of the British firm P&O Ports to Dubai Ports World.---
BY STEVE HARRISON,[email protected].
2.Firm Sues to Block Foreign Port Takeover
''Our ports are the front lines of the war on terrorism. They are both vulnerable targets for attack and venues for smuggling and human trafficking,'' Menendez said. ``We wouldn't turn the border patrol or the customs service over to a foreign government, and we can't afford to turn our ports over to one either.''
Earlier this week, both Republican and Democratic lawmakers expressed concern about the Dubai deal's impact on national security, as well as what some say was the ''secretive'' manner in which a U.S. government committee signed off on the sale.
PSA has agreed not to change any staff in P & O if she takes over.
By TED BRIDIS, Associated Press Writer ,18.02.2006.
WASHINGTON - A company at the Port of Miami has sued to block the takeover of shipping operations there by a state-owned business in the United Arab Emirates. It is the first American courtroom effort to capsize a $6.8 billion sale already embroiled in a national debate over security risks at six major U.S. ports affected by the deal. .............
A New Jersey lawmaker said Saturday he intends to require U.S. port security officials be American citizens, to prevent overseas companies operating domestic shipping facilities from hiring foreigners in such sensitive positions. Republican Frank A. LoBiondo, chairman of the Coast Guard and Maritime Transportation Subcommittee, cited "significant" security worries over the sale to Dubai Ports World.
In New York, families of some victims from the September 2001 terror attacks planned to criticize the deal during a press conference Sunday with Democratic Sen. Charles Schumer (news, bio, voting record), a leading critic of the sale. Schumer said he is dubious any assurances can justify involvement by the United Arab Emirates in American ports.
Schumer and other critics have cited the UAE's history as an operational and financial base for the hijackers who carried out the attacks against New York and Washington.
"A lot of families are incensed by this, because you're talking about the safety of the country," said William Doyle, whose son Joseph died at the World Trade Center. ""We have a problem already in our ports because all of our containers aren't checked, but now they want to add this unknown? It's not right."
This is a great plus point.
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Dubai company seeks loan to fund P&O deal
DUBAI : Dubai Ports World will borrow US$6.5 billion to finance its acquisition of British port and ferries group P&O, a statement said.
DP World has mandated Barclays Capital and Deutsche Bank to "arrange facilities totalling US$6.5 billion incorporating a US$6.3 billion (syndicated) term loan facility and a US$200 million revolving credit facility for working capital purposes ... to finance acquisition of Peninsular and Oriental Steam Navigation Company (P&O)," the statement said.
The five-year facilities will also be used to "refinance existing indebtedness," it said.
Barclays Capital is the investment banking division of Barclays Bank, which along with Deutsche Bank has underwritten the facilities.
Syndication of the facilities will begin next week, with bank meetings planned in Dubai on February 23 and in London on February 27.
DP World's acquisition of P&O will make it one of the three largest container ports businesses worldwide, the statement added.
P&O shareholders approved on Monday a US$6.8 billion takeover bid by DP World.
The deal has sparked criticism from lawmakers and others in the United States because it will give the Dubai government-owned company control of six major US ports.
The Committee on Foreign Investment in the United States (CFIUS), which is headed by the Treasury Department, has approved the deal that would make the Dubai firm manager of facilities in New York, New Jersey, New Orleans, Miami, Philadelphia and Baltimore.
Dubai is one of the seven members of the United Arab Emirates. - AFP/ls/de