Questor share Tip: Forth Ports bid target once more

When Forth Ports rejected a £ 14 a share bid approach of Northstream consortium last may, he took surveys of its other shareholders on what could be an acceptable price of the takeover.

The message was clear: even £ 15 would not suffice. But it would be closer to the mark.

These new filtered on the waves, and now the key member of Northstream - the Arcus European Infrastructure Fund - are solo sailing with a renewed inclination at the last of the main groups cited port.

Arcus, which is already a principal shareholder of Forth with 22 8pc, filed a 16.30 £ proposed a share offer, upgrading Forth at £ 746 m - as agreed to pay a p 20 final dividend share for 2010.

This time, Forth - owner of Scottish Leith, Rosyth and Grangemouth ports as well as the London Tilbury docks - has opened its books.

The price mentioned is not the £ almost all who might have been necessary at property boom when evaluators were salivate on the potential of the Forth development assets.

In 2005, these assets have been assessed by DTZ to 285 m £-a value well enough, they held until 2007.

Then came the crash. 2008 Assessment of DTZ diving at only £ 60 m - and while it amounted to 74 m £ 2009, reflecting in part Forth taking full ownership of the development of Ocean Terminal in Edinburgh.

It is one of the problems with valuing Forth: there is clear potential in the field of property realizing it but is another story.

There are other possibilities, too, plant biomass on surplus lands in the Scottish ports and the construction of boost for the 2012 Olympics are bringing to Tilbury. But a large part of this tomb in the box entitled "potential".

As for now, the values of Arcus proposal that Forth to about 29 times expected earnings - and it is hard to see a counter-bidder, set the given Arcus chunky. It is noticeable, too, that Arcus is made that "confirmation due diligence", involving an agreement is not far away.

There is a risk, of course, a final shift. But it seems only a matter of time before the boat coming Forth. Investors must not long to wait. Hold'em.

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Wood Group is a likely takeover target?

Most analysts put a price on the part of 12pc gain on the fact the company succeeded in obtaining a price much better than expected for the division well-support – "nearly twice the price than many market practitioners thought that it would get," according to a securities broker.

Andrew Dobbing, JP Morgan Cazenove analyst also noted that "removal raises the competitive positioning of Wood Group" Don in their point of view "more focus and clearer market leadership in its other businesses."

Indeed, Wood Group will now only fully focus of "urban Sites contaminated brownfield production services", a service which consists to renew and maintain existing oil fields for production companies.

Still, there is a sense that persist among some analysts and traders by selling wells-support division, the company did itself a more tempting prospect for a purchaser of the whole group.

Even if a takeover is unlikely to short-term, traders to take into account that a bid on a large scale is possible over the next twelve months.

It is partly because consolidation is intensifying in oilfield services. GE, for example, a hoovered of several companies, including Wellstream listed in London. Wood, meanwhile, Group buys NHP almost billion $ last year.

Keith Morris, analyst of evolution, said: "carriers energy cashed-up see cyclical recovery extends over the next years, so it is better to buy now rather than later, when it will be too expensive."

So, who are likely buyers of group wood?

City notebooks take into account that the company would be an ideal candidate for potential merger to Amec.

The two companies have vigorously denied in the past that a merger is unlikely, but an analyst, said: "It is fair to say that through the sale of wells-support division, the company is now more attractive to Amec."

Energy & Utilities and positions vacant Oil & Gas jobs Telegraph

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