AB Ports rejects 'wholly inadequate' $6 billion offer

LONDON - Associated British Ports, Britain's largest ports group, said yesterday it had rejected an indicative takeover offer worth around £2.2 billion ($6.38 billion) from a Goldman Sachs-led consortium.

"The board considered the non-binding indicative offer and has concluded that it is wholly inadequate," AB Ports said.

The group said the offer was in cash at 730 pence a share. Earlier the company's shares ended 1.9 per cent lower at 717p.

The news comes in the wake of the US$6.8 billion takeover of British ports operator P&O, completed this month, and represents the latest in a growing list of offshore predators snapping up British port assets.

They have become attractive targets because of their stable income streams, large property portfolios and buoyant shipping markets on the back of growth in Chinese trade flows.

Goldman Sachs said on Monday it was working with investment groups from Canada and Singapore on a possible bid for the owner of 21 British ports, including Hull and Plymouth.

It said it had teamed with Borealis, the investment vehicle of Ontario pension fund OMERS, and GIC Special Investments, the private equity arm of the Government of Singapore Investment Corporation.

- REUTERS