P&O gets better offer from Dubai group

Jan 27, 2006, 14:45 GMT

.LONDON, England (UPI) -- A Middle Eastern investor seeking to buy a British ports operator has boosted, yet again, the price it is willing to pay.

Late Thursday, Dubai Ports World responded to a newly heightened $6.4 billion offer for Peninsular & Oriental Steam Navigation Co., from Singapore`s PSA International Pte., by offering $6.97 billion, the Guardian reported Friday.

DPW`s all-cash offer came only hours after the 169-year-old P&O, the fourth-largest port manager, had accepted that offer from PSA, which is owned by Singapore`s state investment company Temasek Holdings Pte., the second-largest port operator in the world.

A DPW spokesman said its latest offer marked a 71-percent premium to P&O`s share price on Oct. 27, the last day before rumors of a takeover battle for the British company became public.

P&O`s finance director, Nick Luff, said it was 'not difficult' to come to the conclusion that the latest offer should be accepted, 'especially when Dubai has got all the regulatory clearances.'