DP World unmoved by bid extension

Dubai: DP World is standing by its $5.88 billion offer for UK-based ports operator P&O despite an extension being granted to potential rival bidder PSA of Singapore.

The board of P&O, one of the world's leading ports operators, announced it would move back a shareholder meeting due on February 6 to no later than February 15 to approve DP World's bid.

Sultan Ahmad Bin Sulay-em, chairman of DP World, said his company's bid remained the only valid bid to be accepted by the board of P&O, and that he expected this move, which was typical among publicly listed companies in the UK.

"We expected this to happen. When someone puts in a bid for a company listed on the UK stock market, they normally give them two weeks in the UK. I think they are just giving PSA more time to see if they can come up with a firm bid," he said.

Bin Sulayem dismissed the suggestion that the UK ports operator might be having second thoughts about DP World's offer, saying the board of P&O had a duty to its shareholders. "This is a UK publicly listed company, and the shareholders have the right to get the best price. The board is only doing its duty. It is expected to remove any doubt that they are not going to do the best for the shareholders. So far they have approved our bid, which is the only valid bid."

DP World submitted its formal bid on December 16, and it will now have to wait until February 15 for news of whether or not it has been successful.

Despite P&O's apparent dithering over DP World's offer, Bin Sulayem said it had not dampened his company's enthusiasm for the deal. "So far, nothing has changed," he said.

No one was available at P&O to comment on the decision to delay the shareholder meeting.

Bin Sulayem has just returned to the UAE from South Korea, where he attended the opening of Pusan New Port container terminal.

DP World currently owns a 25 per cent stake in the Korean port, which is expected to become one of the most important container and trans-shipment terminals in north-east Asia.