German TUI group bids for CP Ships of Canada
22 August 2005, HANOVER, GERMANY - German holidays and shipping group TUI unveiled Sunday a cash takeover bid worth EUR 1.7 billion for CP Ships of Canada.
22 August 2005
HANOVER, GERMANY - German holidays and shipping group TUI unveiled Sunday a cash takeover bid worth EUR 1.7 billion for CP Ships of Canada.
Combined, their shipping interests would form the fifth-largest container-shipping group in the world, stockmarket-listed TUI said from its headquarters in Hanover, Germany. The industry is currently expanding fast, thanks to a boom in world trade.
The German company, whose shipping operations are run by its Hapag-Lloyd division, said it had received sufficient bank credit to finance the takeover, but would seek around EUR 1 billion in new equity from shareholders to reduce its debt exposure.
It bid 21.50 US dollars per share, which it said was nearly a 25-per-cent premium over the average price of CP Ships stock in the past three months. TUI added that the CP Ships board had recommended the shareholders accept.
The offer is conditional on two-thirds of CP shareholders accepting.
CP Ships and Hapag-Lloyd are currently 16th and 13th placed respectively in the container business. Pressure for mergers grew recently when Danish-based Maersk Sealand took over P&O Nedlloyd.
Subject: German news