AFTER weeks of speculation, a second takeover approach has been made for P&O.

Dubai Ports World was first into the arena with a £3.3billion bid, and this was being recommended to shareholders.

Temasek, the Singapore government investment agency, then expressed an interest and P&O’s advisors, Citigroup, made an appeal to the Takeover Panel to force Temasek to say whether or not they had any intention of submitting a formal bid. The panel rejected the request.

But now, PSA International - which is owned by Temasek - has made a £3.5billion approach to P&O.

This values P&O’s shares at 470 pence, 27 pence more than the offer by Dubai Ports.

PSA is being given until early February to examine its accounts and decide whether to make a formal bid.

Temasek already owns 4.1 per cent of P&O.

P&O Ferries, which operates the Dover-Calais cross-Channel services, is one of three divisions of P&O. The others are ports and logistics.