A group led by US investment bank Goldman Sachs raised its bid for Associated British Ports to £2.58 billion ($4.75 billion) today, after a rival group said it might make a counterbid.
Admiral Acquisitions, the Goldman Sachs consortium, said it had lifted its cash bid to 840 pence a share from the 810p a share it agreed with Britain's biggest ports group on Wednesday.
Australia's Macquarie Bank said late yesterday it was part of a consortium that was also considering an offer.
Goldman Sachs is under pressure to complete the deal after a string of failed bids, including for airports group BAA, broadcaster ITV and pubs group Mitchells & Butlers.
Port groups have become attractive targets due to their stable income streams and property assets and with shipping markets buoyant on the back of growth in world trade.
In March, Dubai Ports World completed a $6.8 billion takeover of P&O after a bidding war with Singapore's PSA International.
The Admiral consortium is 33 per cent owned by Canada's Borealis Infrastructure, the investment vehicle of Ontario pension fund OMERS; 33 per cent by GIC Special Investments Pte , the private equity arm of the Government of Singapore Investment Corporation; 23 per cent by Goldman Sachs; and, about 10 per cent by the Prudential Group's Infracapital Partners.
The Macquarie group includes two of the investment bank's spin-off infrastructure funds as well as UK private equity firm 3i Group Plc, Canada Pension Plan Investment Board, and Australia's Industry Funds Management. Associated British Ports shares closed at 826-1/2 pence on Thursday.