Singapore walks away from P&O
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Singapore walks away from P&O
By Alistair Osborne, Business Editor (Filed: 11/02/2006)
The Port of Singapore Authority is expected to turn its attentions to US terminals operator Stevedoring Services of America after yesterday pulling out of the £3.92 billion bid battle for Britain's P&O.
The withdrawal of the PSA, which is owned by the Singaporean government's investment arm Temasek, left the way clear for Dubai's DP World to land P&O with its 520p-a-share bid. P&O shares fell 20¾ to 516¾p.
The PSA pulled out arguing that its 470p-a-share offer on January 26 - trumped within hours by DP World - "represented a full and fair value".
It declined to comment on rumours that the PSA's ambitious boss Eddie Teh was blocked from making a higher bid by Temasek chief Ho Ching, the wife of Singapore's prime minister Lee Hsien Loong. Mr Lee said last week that there was "a right price" for any deal.
Mr Teh is now expected to take a serious look at Stevedoring Services, which has container terminals along the US West Coast and is one of the last remaining big players in the industry. Analysts value it at around £1.5 billion. The PSA twice looked at Stevedoring Services before Mr Teh took over.
The PSA's withdrawal, which came on the eve of Monday's shareholder meeting to vote on the DP World bid, was cushioned by its 4.1pc stake in P&O.
It acquired about half of this last May when it first considered a tilt at P&O and stands to make £45m-£50m profit.
Three hedge funds which had been buying shares above DP World's 520p offer saw their profits trimmed. Even so, Eton Park has made about £15m, while Tisbury Capital is thought to have made at least £3.5m, with Sandell Asset Management making more than £2.5m.
Sultan Ahmen Bin Sulayem, the DP World chairman, said: "We're pleased with this development and remain encouraged by the board's unanimous recommendation to its shareholders of our offer."
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/02/11/cnpno11.xml&menuId=242&sSheet=/portal/2006/02/11/ixportal.html -
It is probably due to "behind the scene" arrangement - and face giving - with the Dubai authorities that after spending MILLIONS of Dollars on legal fees Singapore is simply walking away from a tussle that it has been well prepared.
How much has Singapore spent on this failed exercise ?
Will it ever be made known ?
How much of this "legal expenses" could have gone to an endowment fund to help Singaporeans in their old age ?
Perhaps it is just as well that the $660Million - that would have gone to the Endowment Fund of P & O Retiree's - can now be diverted to a sinking fund to save our CPF ? .
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You are simply too criticalOriginally posted by Atobe:It is probably due to "behind the scene" arrangement - and face giving - with the Dubai authorities that after spending MILLIONS of Dollars on legal fees Singapore is simply walking away from a tussle that it has been well prepared.
How much has Singapore spent on this failed exercise ?
Will it ever be made known ?
How much of this "legal expenses" could have gone to an endowment fund to help Singaporeans in their old age ?
Perhaps it is just as well that the $660Million - that would have gone to the Endowment Fund of P & O Retiree's - can now be diverted to a sinking fund to save our CPF ? .
Atobe, I think you just have to learn to look at this in the commerical mindset... Your anti-PAP ideas is just corrupting your thoughts here.. Forgive me for saying this, but you have read more into this... Yes Dubai is very hungry, but PSA has to try to stop them from making big as far as they could if not LATER someone comes and accuse they did nothing...
As I see P&O, they do not eventually accquire it might be a blessing though, as many ports in USA, Canada are runned by concessions... -
wasted. so close.
but then again, how to fight a country sitting on more litres of oil than there are persons in SEA ?
i support psa though the amt is...
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Wise decision and wise move by PSA.
Dubai will be subsidizing this venture all the way with their oil.
Its actually a conspiracy by Singapore and UK to reduce the source of funding to terrorists. -
If you were to see P&O Ports biz, many are runned by concession esp in North America, there will be bound to have operational probsOriginally posted by Salman:Wise decision and wise move by PSA.
Dubai will be subsidizing this venture all the way with their oil.
Its actually a conspiracy by Singapore and UK to reduce the source of funding to terrorists. -
Originally posted by sbst275:
Someone got to stay awake, when so many have fallen asleep.
Original post by Atobe:
It is probably due to "behind the scene" arrangement - and face giving - with the Dubai authorities that after spending MILLIONS of Dollars on legal fees Singapore is simply walking away from a tussle that it has been well prepared.
How much has Singapore spent on this failed exercise ?
Will it ever be made known ?
How much of this "legal expenses" could have gone to an endowment fund to help Singaporeans in their old age ?
Perhaps it is just as well that the $660Million - that would have gone to the Endowment Fund of P & O Retiree's - can now be diverted to a sinking fund to save our CPF ? .
You are simply too critical
Atobe, I think you just have to learn to look at this in the commerical mindset... Your anti-PAP ideas is just corrupting your thoughts here.. Forgive me for saying this, but you have read more into this... Yes Dubai is very hungry, but PSA has to try to stop them from making big as far as they could if not LATER someone comes and accuse they did nothing...
As I see P&O, they do not eventually accquire it might be a blessing though, as many ports in USA, Canada are runned by concessions...
On a commercial basis, after spending MILLIONS in legal and any other fees is there any other better reasons for abandoning the chase ?
Do you think that Dubai Authorities will make life easy for PSA to run Dubai Port, if PSA succeed in swallowing up P&O ?
After the recent successful visit to the Middle-east by SM GCT, cementing a more binding diplomatic relations between the various Middle-eastern countries and Singapore, will it be of any use to compete in outbidding Dubai for P&O ?
There are many other ventures that will be even more beneficial with the co-operation of the Dubai Authorities.
In Politics, nothing is ever Black or White, and will require a multi-colored lens to see things in different perspectives. -
Which port does not have operational problems?Originally posted by sbst275:If you were to see P&O Ports biz, many are runned by concession esp in North America, there will be bound to have operational probs
One way or another, pulling out from P&O was a great move. -
Originally posted by Atobe:
You mean its good to throw good money after bad?
Someone got to stay awake, when so many have fallen asleep.
On a commercial basis, after spending MILLIONS in legal and any other fees is there any other better reasons for abandoning the chase ?]
Don't you know we actually made money by having Dubai pay through their nose?
Millions in legal fees? How much does it cost to submit a bid? We made $60million in return.
Do you think the Arabs will sabotage themselves?
Do you think that Dubai Authorities will make life easy for PSA to run Dubai Port, if PSA succeed in swallowing up P&O ?
Do you think arabs are as bigoted as you?
Didn't you cry foul of lost legal fees? So now what you want? Bid or not bid? How stupid of you?
After the recent successful visit to the Middle-east by SM GCT, cementing a more binding diplomatic relations between the various Middle-eastern countries and Singapore, will it be of any use to compete in outbidding Dubai for P&O ?
Like?
There are many other ventures that will be even more beneficial with the co-operation of the Dubai Authorities.
Its no wonder you didn't realise how much UK and Singapore managed to fleece Dubai together and cut their funding elsewhere.
In Politics, nothing is ever Black or White, and will require a multi-colored lens to see things in different perspectives. -
P&O has many ports runned on concession...Originally posted by Salman:Which port does not have operational problems?
One way or another, pulling out from P&O was a great move.
If PSA were really going to takeover, they will have to accept P&O's acceptance for the concession back then, incl labour issues...
It's best that PSA slowly expand on its growing ports... Afterall, PSA has to look aft its home port, as PTP and Klang Westport is now hungry -
er.. PSA ports are also runned on concessions too.
And concessions isn't really a bad thing, you can benefit a a lot from them if you play your cards well.
Anyway, i'm glad we walked away from the deal and left Dubai bleeding through the asse. -
Yes, but the thing is when it comes to concessions, it is best that you are the one that bidded for it... Not like taking over and having to accepting though you may not accept itOriginally posted by Salman:er.. PSA ports are also runned on concessions too.
And concessions isn't really a bad thing, you can benefit a a lot from them if you play your cards well.
Anyway, i'm glad we walked away from the deal and left Dubai bleeding through the asse.
Dubai might end up bitting a bullet... -
PSA already have a 4 over % stake in P&O, therefore there PSA will make some money from walking out of this deal.
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Originally posted by sbst275:
A bullet they must bite.
Dubai might end up bitting a bullet...[/b]
I think it will pay off in the long run given the increase in trade. But how well it will pay or how long it will take to pay back depends on how well they continue to manage these ports and the host countries. Provided they don't screw up big time. -
Originally posted by Salman:
Did you delude yourself that we made money by letting Dubai complete their successful takeover ?
Original post by Atobe:
Someone got to stay awake, when so many have fallen asleep.
On a commercial basis, after spending MILLIONS in legal and any other fees is there any other better reasons for abandoning the chase ?]
Reply by Salman:
You mean its good to throw good money after bad?
Don't you know we actually made money by having Dubai pay through their nose?
Millions in legal fees? How much does it cost to submit a bid? We made $60million in return.
Can a "no brainer" comprehend the actual size of the legal fees for a transaction that is worth Sterling 3.92 BILLION ?Original post by Atobe
Did you not claim in all your posts that the Arabs - being Muslims - are the most likely group of people to be terrorists ? .
Do you think that Dubai Authorities will make life easy for PSA to run Dubai Port, if PSA succeed in swallowing up P&O ?
Reply by Salman:
Do you think the Arabs will sabotage themselves?
Do you think arabs are as bigoted as you?
It was quite clear that you were the source of thinking that the Arabs are "no brainers" and can match your impeccable skill at being "no brainers" ? .
By your standard of bigotted understanding of the Muslims, I am sure the Arabs and myself cannot outperform your high standards of bigotted language. .Original post by Atobe
Yes, it was stupidity on the part of the supreme ability of our self-proclaimed intelligent Elite, who has no control over the CEO of Temasek. .
After the recent successful visit to the Middle-east by SM GCT, cementing a more binding diplomatic relations between the various Middle-eastern countries and Singapore, will it be of any use to compete in outbidding Dubai for P&O ?
Didn't you cry foul of lost legal fees? So now what you want? Bid or not bid? How stupid of you?
Was it not clear that SM GCT had only recently completed a tour of the Middle-east to cement closer economic ties ? .
Having bridge and cement good relations with the various sheiks of the UAE, is it not quite ridiculous that the attempt by PSA to terminate its effort came so suddenly ? .
If Temasek insist on PSA to make a counter offer, only the POWER OF ONE can stop Temasek, can anyone else ? .
If you are a "no brainer" familiar with only "one liners" - can anyone fault you in your inability to go beyond "one liners" ? .
As for "stupidity" - can you differentiate the difference from what you see in the mirror ? .Original post by Atobe
Perhaps you should look up the various agreements that SM GCT had signed up with the UAE - if you have the interest to do any research.
There are many other ventures that will be even more beneficial with the co-operation of the Dubai Authorities.
Reply by Salman:
Like?Original post by Atobe
This is the kind of "no brainer" understtanding with the usual shallow "one liner remarks". .
In Politics, nothing is ever Black or White, and will require a multi-colored lens to see things in different perspectives.
Reply by Salman:
Its no wonder you didn't realise how much UK and Singapore managed to fleece Dubai together and cut their funding elsewhere.
"How much did UK and Singapore managed to fleece Dubai together and cut their funding elsewhere" ? .
Is this another baseless "no brainer" deulsion ? . -
What is the price to be paid in legal fees, bank charges, and any other miscellaneous charges - (airfares, board and lodging) - that will be incurred ?Originally posted by Gazelle:PSA already have a 4 over % stake in P&O, therefore there PSA will make some money from walking out of this deal. -
How much legal fees and bank charges will all this cost when there is no deal?
Do you know how much? -
Hey dude, if you dont try, you wont know right?Originally posted by Atobe:What is the price to be paid in legal fees, bank charges, and any other miscellaneous charges - (airfares, board and lodging) - that will be incurred ? -
All business decisions, ventures and study trips are bound to have cost. However, it must be noted that a successful business deal outweighs the cost. What if PSA had gotten P&O at the 470 pence price? And besides, PSA stands to gain from their 4% stake in P&O. PSA got P&O shares cheap last time.Originally posted by Atobe:What is the price to be paid in legal fees, bank charges, and any other miscellaneous charges - (airfares, board and lodging) - that will be incurred ? -
Eh sidetrack abit just a quick question. It seem that no matter whether goverment owned companies buy over any companies in oversea you are not happy and if they pull out of a bid for an oversea company you are also unhappy? So what you really want them to do?Originally posted by Atobe:What is the price to be paid in legal fees, bank charges, and any other miscellaneous charges - (airfares, board and lodging) - that will be incurred ?
Also we need to understand that buying over a company will always result in paying a much higher value that the company is worth and be it a successful or unsuccessful bid there will be bound to have cost involve and this also happen when a private company trying to buy over another company. -
Atobe has raised a valid question on cost. based on experience, investment bankers and their army of financial advisors do not come cheap in london. on a deal worth $10billion you are definately looking at fees in their millions that would have gone down the toilet. investment bankers in the city of london normally charge anywhere between 0.25-1.5% of the deal value, depending on the size of the deal.
temasek's should have done its homework on P&O ages ago when the DP offer was yet to be tabled. I would have expected Temasek to zero in on P&O back in 2004 when it was facing problems in the local market and their share price was downhill. that would have been the best time to buy. unfortunately we failed to realise its potential back then and only decided to jump in when an offer had been made. based on sources in london Temasek has got its sights on BAA which runs heathrow, stanstead and gatwick. even on that deal they are too late as there are offers already being tabled. -
Well, I can see PSA is doing find, but coming port projects they will just have to buck up a bitOriginally posted by Salman:A bullet they must bite.
I think it will pay off in the long run given the increase in trade. But how well it will pay or how long it will take to pay back depends on how well they continue to manage these ports and the host countries. Provided they don't screw up big time.
See, now PSA at its homeport letting ex-big customer to use PPT... No need to guess much you know is which line I am talking abt... They have started to be upgraded to use PPT since this month instead of Brani Terminal -
How can the investment bankers take a cut when there is no deal? Please explain.Originally posted by gill_hfc:Atobe has raised a valid question on cost. based on experience, investment bankers and their army of financial advisors do not come cheap in london. on a deal worth $10billion you are definately looking at fees in their millions that would have gone down the toilet. investment bankers in the city of london normally charge anywhere between 0.25-1.5% of the deal value, depending on the size of the deal.
temasek's should have done its homework on P&O ages ago when the DP offer was yet to be tabled. I would have expected Temasek to zero in on P&O back in 2004 when it was facing problems in the local market and their share price was downhill. that would have been the best time to buy. unfortunately we failed to realise its potential back then and only decided to jump in when an offer had been made. based on sources in london Temasek has got its sights on BAA which runs heathrow, stanstead and gatwick. even on that deal they are too late as there are offers already being tabled.
Do you really think Temasek needs financing for this deal? -
US Senate demands an inquiry to look into Dubai's purchase of P&O Ports
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I hope they rescind the rights US ports or add more insurance and safeguards to these ports.