Shareholders were confused as the world's fifth-largest port operator, Cosco Pacific, said yesterday that it had offered US$779.32 million to manage container operations for 35 years at Piraeus port, Greece's biggest seaport, well below press reports of a $6.7 billion bid, trumping the $6.32 billion bid by a Hutchison Whampoa-led group.
Cosco said it planned to pay for $389.66 million of the acquisition price through a combination of shareholder equity and external funding.
A company spokeswoman said Cosco could neither explain the discrepancy nor provide more detailed information at present.
The market was concerned Cosco might have overpriced its bid because specific information on the profitability of Piraeus port's container business was unavailable.
Shares of Cosco Pacific slumped as much as 7.7 per cent yesterday as investors remained confused. The stock narrowed the loss later in the day and closed at HK$13.98, down 3.85 per cent, making it the biggest loser on the benchmark Hang Seng Index.
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