P&O 'preliminary' takeover talks

The largest ferry operator out of Dover P&O has received approaches on a potential takeover, its board said on Sunday. "P&O confirms that it has received a preliminary contact... which may or may not lead to an offer," the firm said.

The Sunday Times says the interested party is Dubai Ports World, owned by the United Arab Emirates government, which could bid £3bn ($5.35bn).

Last week P&O, which has been slimming down its ferries and property arms, cut back earnings expectations for its key ports business. In August P&O unveiled a sharp dip in first-half earnings.

P&O has been selling properties and slashing jobs at its loss-making ferry operations as part of a shake-up. The company was forced to rethink its strategy as budget airlines and the Channel Tunnel eroded its market share. Over 1,000 job losses were announced in 2004 and P&O has since cut back on routes.

Hoverspeed who operate the Dover - Calais Seacat service and employ 102 people in Dover are also reported considering their future operations in another potential blow to local jobs. A Times report claims in is "unlikely" that sailings will resume next year.