Speculation increases over Babcock takeover of Forth Ports

Source: Supply Chain Digital

Date :14/01/2008 14:27:08

Australian investment firm Babcock & Brown confirms that it has built a stake of more than 15 percent in the ports operator, intensifying speculation of an imminent takeover.

Forth Ports, whose ports include Tilbury and Grangemouth, has risen ten percent over the past three months has been at the centre of bid speculation for months, with analysts putting a £1 billion-plus value on the port operator.

Babcock & Brown is the third biggest ports operator in Europe after its £260 million acquisition of PD Ports in 2006.

Takeover approach

A spokesman for Forth Ports said: “Their [the Babcock] investment clearly endorses both the quality and significant prospects for the Forth Ports business.”

The Edinburgh-based company’s shares closed at £19.38 on Friday. It is thought that Babcock would have to offer £24 a share to bring Forth’s board to the table.

Trading update

In its full year trading update, the UK’s last listed port operator said trading within the Ports' Division showed a ‘significant improvement’.

The firm said its Tilbury operation stood to benefit from increased trade linked to the 2012 London Olympics, while its Scottish ports had also seen a recovery in container volumes in the second half of 2007.

January 14, 2008