MercoPress. South Atlantic News Agency

Portsmouth Harbour declines FIH offer.

The board of Portsmouth Harbour Ferry Company (PHFC) remains at odds with Grant Thornton Corporate Finance, its own financial adviser, in spite of an improved offer for the company from Falkland Islands Holdings (FIH).

FIH said it had increased its offer for the ferry operator to £13.3m following talks with Grant Thornton, which had decided to advise the PHFC's board to recommend the revised offer to its shareholders.

But PHFC directors continue to oppose the terms of the proposed takeover, saying they fell "short of a price that fully reflects the future potential of the company".

FIH made its 7-for-1 share offer last week, with a part-cash alternative of £25 and 850p in loan notes, redeemable over four years. It then agreed to increase the value of the loan notes element in the part-cash alternative offer to £10, redeemable over three years.

FIH already holds 26.4 per cent of the company, which operates the Gosport Ferry passenger service.

Shares in FIH, an Aim-traded concern involved in general trading in the Falklands, fell 25p yesterday to 580p.(FT)