Friday, January 13, 2006
P&O: DP World bond issue indicates readiness to increase offer – report
Dubai Ports World (DPW) yesterday increased the amount of a bond issue, suggesting it might increase its bid for P&O, a Daily Telegraph report said. DPW said first it was looking to raise USD 2.5bn from the bond issue, which is being conducted by Barclays Capital.
However, sources close to the issue yesterday said that the amount to be raised has risen to USD 3.5bn following heavy demand for the bonds. DPW declined to comment, the report said.
The report said the bond issue is Shariat-compliant, as it pays interest only on maturity, rather than periodically. Ports, Customs and Free Zone Corporation, DPW's holding company, is the bond issuer, the newspaper said.
DPW submitted a GBP 3.3bn (EUR 4.8bn) offer for the listed UK ports operator in December, the report noted. On Tuesday (10 January), Port of Singapore Authority (PSA), the ports group owned by Temasek, approached P&O with a 470p a share offer. P&O’s share price rose 0.75p to 499.5p yesterday, in anticipation of a winning bid level of 500p per share, the item said.
Eton Park, the hedge fund, increased its shareholding in P&O from 2.47% to 3.94% via contracts for difference, the item said.
P&O’s market capitalisation stands at GBP 3.72bn (EUR 5.43bn).
However, sources close to the issue yesterday said that the amount to be raised has risen to USD 3.5bn following heavy demand for the bonds. DPW declined to comment, the report said.
The report said the bond issue is Shariat-compliant, as it pays interest only on maturity, rather than periodically. Ports, Customs and Free Zone Corporation, DPW's holding company, is the bond issuer, the newspaper said.
DPW submitted a GBP 3.3bn (EUR 4.8bn) offer for the listed UK ports operator in December, the report noted. On Tuesday (10 January), Port of Singapore Authority (PSA), the ports group owned by Temasek, approached P&O with a 470p a share offer. P&O’s share price rose 0.75p to 499.5p yesterday, in anticipation of a winning bid level of 500p per share, the item said.
Eton Park, the hedge fund, increased its shareholding in P&O from 2.47% to 3.94% via contracts for difference, the item said.
P&O’s market capitalisation stands at GBP 3.72bn (EUR 5.43bn).
