OOIL denies Cosco bid for container line OOCL

Responding to reports in the Wall Street Journal and the Chinese media that Cosco Shipping was readying a bid in excess of $4bn for OOCL, the parent company said in a statement to the Hong Kong Stock Exchange: “The company wishes to clarify that the company and OOCL is not aware of, nor is it involved in any bid relating to the company or OOCL.”

Meanwhile Reuters quoted a Cosco Shipping spokeswoman as saying the rumours were "incorrect".

OOIL’s share price has surged more than 30% since the start of the year on market talk that it is up for sale. Along with Cosco reported to be readying a firm bid CMA CGM and Evergreen have also been linked as interested parties in the Hong Kong-based line.

Following CMA CGM buying APL, the planned merger of the container businesses of NYK, MOL and K Line, Hapag-Lloyd moving to acquire UASC, Maersk Line buying Hamburg Sud, and the bankruptcy of Hanjin Shipping, OOCL was one of the few lines left in the mid-sized bracket with 2.8% of global capacity. Having been able to mostly retain profitability OOCL was viewed as an attractive option for consolidation.

Listed on the Hong Kong Stock Exchange OOIL is 69% owned by the Tung family.