KEY POINTS:
SYDNEY - Australian investment bank Babcock & Brown says it has acquired a strategic stake in British ports operator Forth Ports.
Babcock, already one of Europe's largest port operators, said it controlled 20.4 per cent of Forth's issued share capital. The bulk of that, 19.6 per cent, was held by its European Infrastructure Fund, while Babcock itself held 0.8 per cent.
Forth, the last listed ports operator in the UK, has a market capitalisation of around US$1.7 billion ($2.16 billion).
The Sunday Times newspaper in London reported that Babcock & Brown's increased stake in Forth Ports could lead to a takeover offer.
However, while there has been talk of a £24 per share bid worth £1.1 billion ($2.79 billion), Babcock first wanted to build a 20 per cent stake before deciding whether to proceed, the paper said.
Babcock & Brown bought an 8.03 per cent stake in Forth Ports that was held by Goldman Sachs as well as stock from the market, the paper said.
Forth Ports shares, which set a six-month high at £21.05 last week, closed at £19.38 on Friday.
- Reuters
