A Goldman Sachs-led consortium has outbid Australia's Macquarie Bank for Associated British Ports after raising its cash offer in an auction to nearly £2.8 billion sterling ($5.2 billion).
But Macquarie is not out of the race and is considering its position despite losing one member of its bidding consortium, sources said this morning.
Admiral Acquisitions, the Goldman Sachs consortium, said AB Ports had recommended a revised offer of 910 pence per share, 8.3 per cent higher than its previous proposal of 840 pence.
AB Ports were 3.7 per cent firmer at 913-1/2 pence this morning after touching a record high of 922-1/2 pence, signalling investors are still hopeful of a higher bid.
The revised offer from the Goldman group followed a late-night bidding contest after Macquarie approached AB Ports with an offer. The ports group asked both sides to put their best bids on the table, sources said.
The Macquarie group has told AB Ports shareholders to take no action over the increased Goldman bid, saying it is "considering its position".
One of the sources said UK private equity firm 3i Group had pulled out of the Macquarie bidding consortium.
A Macquarie spokesman declined to comment further.