P&O receives further takeover bid

Ports and ferries group P&O has received a £3,5bn takeover approach from Singaporean state-owned operator PSA International.

In a statement P&O said the approach valued its shares at 470p, beating the takeover offer of 443p a share it has already agreed with Dubai Ports.

It said it would give PSA until early February to examine its accounts and decide whether to make a formal bid.

Ports are benefiting from expanding Asian exports to the US and Europe.

World trade volumes are expected to grow 7.6% in 2006, according to the International Monetary Fund (IMF).

PSA is wholly owned by Temasek, the Singapore government investment agency, which already owns 4.1% of P&O.