Post by ferryfast admin on Feb 12, 2006 23:15:07 GMT -5
Dubai knocks out Singapore to win P&O
Malaysia Sun
Sunday 12th February, 2006
Dubai has ousted rival Singapore in a fight for global shipping supremacy.
Singapore's PSA Corporation announced Friday it would not make a new bid for P&O, the major international logistics and transport company founded in 1837, leaving the way clear for DP World (formerly known as Dubai Ports Authority) to take control.
The two, which are major shipping ports in their own right, had been engaged in a spirited bidding war for the leading global ports operator.
DP World, which was born out of a merger between the Dubai Ports Authority and international arm, DPI Terminals, will now become the world's third largest ports company with 52 container terminals, more than any other operator in over 20 countries.
The final decision will come when shareholders meet in London on Monday to vote on the takeover. P&O Chairman John Park put the company's directors seal of approval on the bid saying on Friday, 'The P&O Directors recommend unanimously the DP World revised offer and look forward to putting it to stockholders. The combination of P&O and DP World has compelling strategic logic and will create significant opportunities for both businesses and their employees.'
'We have always considered ourselves world class,' Mohammad Sharaf, CEO of DP World, told Gulf News on the weekend as news of the success of Dubai's bid spread through the Gulf.
'To be truly a global player you need to be able to serve your customer wherever they are in the world. Should we acquire P&O, DP World will have a truly international scope for the first time in its history,' he said.
'We will have 52 terminals around the world and we will be the number one operator in a number of terminals,' he added.
Sharaf does not expect there to be any rationalisation of the P&O business quite the reverse in fact, he says.
'We want to develop and grow further, not to become smaller. If you look at our record we have always developed the ports where we have gone.'
'It is, of course, premature to say exactly what would happen, but in my time at DP World I have not seen us cutting jobs so far.'
DP World's revised offer of 520 pence per unit of deferred stock represents a premium of 71.3 per cent to where P&O's shares traded prior to speculation of a bid.
The Peninsular and Oriental Steam Navigation Company has a celebrated history dating back to the 1830s. It was incorporated by a Royal Charter in 1840, and its name therefore includes neither 'PLC' nor 'Limited'. The initials 'P&O' are among the most familiar anywhere, and its house flag, older even than the Company itself, is one of the best known. The history of its first century is encapsulated in the heraldry of its Coat of Arms, granted in 1937, while throughout well over 160 years it has been a premier British shipping company, and in its time the largest and most varied in the world.
Over the last quarter of the Twentieth Century P&O diversified into construction management, property investment and development, and a variety of service businesses including exhibition and conference centres, but most of these activities have been disposed of following the Company's decision in March 1999 to concentrate on its maritime and transport interests.
The P&O empire is now split into three main divisions:
P&O Ports is one of the world's pre-eminent container terminal operators and stevedores, with 29 container terminals and logistics operations in over 100 ports. It has a presence in 19 countries across the world, its main service being containerised cargo handling based on long term concessions to operate terminals in ports which offer strong growth opportunities. Other services include: general cargo, bulk cargo, roll on-roll off facilities and cruise passenger terminal management. The company also provides specialist maritime services to industry and government as P&O Maritime Services.
P&O Ferries is a household name in the UK. Routes are operated for freight and tourist passengers between the UK and Belgium, France Holland, Ireland and Spain. The company operates a total fleet of 26 ships.
P&O Ferrymasters, the European road haulage and freight management business is also part of P&O Ferries.
P&O Estates has property interests in the US, the UK and Continental Europe. In 2004 approximately $700 million of property was divested as part of an ongoing strategy of reallocating capital to the high growth ports business. A further target of $565 millionshas been set for 2005.
(P&O Cruises, one of the world's best known cruiseship companies, took over Princess Cruises before merging with Carnival Corporation on April 17 2003. P&O Princess Cruises is thus no longer part of P&O and is not part of the DP World takeover bid. The new merged cruiseline entity is now known as Carnival plc).
Malaysia Sun
Sunday 12th February, 2006
Dubai has ousted rival Singapore in a fight for global shipping supremacy.
Singapore's PSA Corporation announced Friday it would not make a new bid for P&O, the major international logistics and transport company founded in 1837, leaving the way clear for DP World (formerly known as Dubai Ports Authority) to take control.
The two, which are major shipping ports in their own right, had been engaged in a spirited bidding war for the leading global ports operator.
DP World, which was born out of a merger between the Dubai Ports Authority and international arm, DPI Terminals, will now become the world's third largest ports company with 52 container terminals, more than any other operator in over 20 countries.
The final decision will come when shareholders meet in London on Monday to vote on the takeover. P&O Chairman John Park put the company's directors seal of approval on the bid saying on Friday, 'The P&O Directors recommend unanimously the DP World revised offer and look forward to putting it to stockholders. The combination of P&O and DP World has compelling strategic logic and will create significant opportunities for both businesses and their employees.'
'We have always considered ourselves world class,' Mohammad Sharaf, CEO of DP World, told Gulf News on the weekend as news of the success of Dubai's bid spread through the Gulf.
'To be truly a global player you need to be able to serve your customer wherever they are in the world. Should we acquire P&O, DP World will have a truly international scope for the first time in its history,' he said.
'We will have 52 terminals around the world and we will be the number one operator in a number of terminals,' he added.
Sharaf does not expect there to be any rationalisation of the P&O business quite the reverse in fact, he says.
'We want to develop and grow further, not to become smaller. If you look at our record we have always developed the ports where we have gone.'
'It is, of course, premature to say exactly what would happen, but in my time at DP World I have not seen us cutting jobs so far.'
DP World's revised offer of 520 pence per unit of deferred stock represents a premium of 71.3 per cent to where P&O's shares traded prior to speculation of a bid.
The Peninsular and Oriental Steam Navigation Company has a celebrated history dating back to the 1830s. It was incorporated by a Royal Charter in 1840, and its name therefore includes neither 'PLC' nor 'Limited'. The initials 'P&O' are among the most familiar anywhere, and its house flag, older even than the Company itself, is one of the best known. The history of its first century is encapsulated in the heraldry of its Coat of Arms, granted in 1937, while throughout well over 160 years it has been a premier British shipping company, and in its time the largest and most varied in the world.
Over the last quarter of the Twentieth Century P&O diversified into construction management, property investment and development, and a variety of service businesses including exhibition and conference centres, but most of these activities have been disposed of following the Company's decision in March 1999 to concentrate on its maritime and transport interests.
The P&O empire is now split into three main divisions:
P&O Ports is one of the world's pre-eminent container terminal operators and stevedores, with 29 container terminals and logistics operations in over 100 ports. It has a presence in 19 countries across the world, its main service being containerised cargo handling based on long term concessions to operate terminals in ports which offer strong growth opportunities. Other services include: general cargo, bulk cargo, roll on-roll off facilities and cruise passenger terminal management. The company also provides specialist maritime services to industry and government as P&O Maritime Services.
P&O Ferries is a household name in the UK. Routes are operated for freight and tourist passengers between the UK and Belgium, France Holland, Ireland and Spain. The company operates a total fleet of 26 ships.
P&O Ferrymasters, the European road haulage and freight management business is also part of P&O Ferries.
P&O Estates has property interests in the US, the UK and Continental Europe. In 2004 approximately $700 million of property was divested as part of an ongoing strategy of reallocating capital to the high growth ports business. A further target of $565 millionshas been set for 2005.
(P&O Cruises, one of the world's best known cruiseship companies, took over Princess Cruises before merging with Carnival Corporation on April 17 2003. P&O Princess Cruises is thus no longer part of P&O and is not part of the DP World takeover bid. The new merged cruiseline entity is now known as Carnival plc).