'£1bn bid' seen docking at Mersey

MERSEY Docks and Harbour Company is thought to be in early-stage talks with CVC Private Equity, which could lead to a £1bn bid.

Negotiations were said to be at a very preliminary stage, with no assurance that a full offer would be forthcoming.

Shares in Mersey, the UK's second-biggest ports company, soared 82p to 917p, valuing the firm at £716m.

The takeout price is likely to be closer to 950p which would ensure a valuation of more than £1bn when debts are included.

Sources close to Mersey confirmed that Peel Holdings, which last week raised its Mersey stake to 9.25%, is not involved in current talks.

But Peel chairman John Whittaker is known to want to expand his ports empire, which includes Clydeport and the Manchester Ship Canal.

Arbuthnot Securities analyst Alastair Gunn said Peel would need to join forces with a rival private equity house to bid.

Mersey Docks handles about a quarter of the shipping containers travelling between Britain and the US.