The first port of call

How much are scarce assets worth? In the case of P&O, the UK-listed port operator, they may worth quite a lot. Dubai Port World (DPW), a government-owned operator, is interested in bidding for the company, according to reports. P&O stock flew up more than 35% on the news – giving it a market capitalisation of £3bn. But a bidding war could push the value even higher. The appeal is not in current earnings. The current price is a whopping 27 times the consensus expectations for P&O’s 2005 earnings...