P&O bid: a cautionary tale

The fall of P&O into foreign hands is bound to cause regret in some quarters, says The Daily Telegraph.

The fall of P&O into foreign hands is bound to cause regret in some quarters, says The Daily Telegraph.

But it would be churlish for a company that grew rich on the back of Victorian-era globalisation to complain about the new world order. The $3.3bn bid by DP World, the Dubai-based ports operator, values P&O shares at a generous 443p, a 46% premium to the pre-bid price and the board has advised shareholders to accept it. Any potential counter bidder is likely to be deterred by terms that oblige P&O to pay DP World £34m if the deal falls apart, says the FT. What's more, the trustees of the pension scheme decided to ask for a cheque for £200m to cover the pension deficit before they would agree to the sale, says Patience Wheatcroft in The Times. That's enough to put off potential rivals, but small change to the Dubai royal family who are backing the deal.

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