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UK Mersey Docks and Harbour Company continuing talks with CVC

The board of the Mersey Docks and Harbour Company has confirmed 'that discussions are taking place with a private equity house which may or may not lead to an offer at 925p in cash per Mersey Docks ordinary share.' European buy-out firm CVC is believed to be the interested party.

The company's statement said the board believes the offer fairly reflects the value of the business and, in the absence of a higher offer, represents an attractive exit price for shareholders.

CVC was first reported to have approached Mersey Docks with a £1bn offer in November last year. The target firm had long been considered an attractive target for private equity firms because of its substantial property portfolio and its strong cash generation.

CVC is one of the most active of the large European buy-out firms and has averaged around six deals each year for the last four years. It backed one of the largest deals in the UK last year with the £1.75bn acquisition of UK motoring services business the AA alongside Permira.

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