Dubai Ports World appears to have secured a GBP3.3 billion (USD5.7 billion) bid for The Peninsular and Oriental Steam Navigation Company (P&O) after the P&O board recommended shareholders accept the offer.

According to Lloyd's List Daily Commercial News, the recommended deal will create the world's third largest container terminal operator and will boast 51 terminals in 30 countries with a combined capacity of 50 million TEUs.

State-owned DP World has offered 443 pence (USD7.67) per share in an all-cash bid for P&O.

DP World chairman Sultan Ahmed bin Sulayem said P&O would complement his group well. "We are strong in many areas but not so strong in other areas, mainly America, Australia and Europe," he said. "They are already in that market."

While some analysts did not rule out a counter-bid even at this advanced stage, the market seems to suspect that DP World will win the day, Lloyd's List in London reports.

P&O and DP World emphasised the takeover was not a cost-cutting exercise.
"We don't anticipate job losses," Sulayem said. "On the contrary there will be more hiring because there is a lot of growth in the business."