DP World shelves London dual listing plan

DP World, the container terminals group controlled by the debt-laden Dubai World, has postponed plans for a dual listing in London, blaming technical difficulties in merging its home stock exchanges, the Daily Telegraph reported.

The world's fourth-biggest container ports group, which acquired UK operator P&O for US$5.9 billion in 2006, said it was shelving plans to have its shares traded in London "until an acceptable system that supports the dual listing is available".

DP World announced plans in January for a London listing to boost liquidity in its shares after poor trading on Nasdaq Dubai and its forerunner, the Dubai International Financial Exchange. However, this move depended on the successful merger of the emirate's international exchange, Nasdaq Dubai, and Dubai Financial Market, its more liquid, largely retail equities, market.

DP World wants to ensure there will be no technical hitches linking the merged platform to the London Stock Exchange. "We are taking a cautious approach and want to make sure that shares are fully fungible between London and Dubai," a spokesman said.

"Given that this will take time, the next practical window of opportunity to seek admission for listing" would be after the full-year results to December 31, 2010, the company said.

DP World volumes fell 8 percent last year to 25.6m TEUs.
(Source:www.cargonewsasia.com)