MSC Mediterranean Shipping Company S.A., the world?s biggest container shipping company, has offered to buy almost half of the main operator of Hamburg port in a deal that could be worth nearly EUR 1.3 billion ($1.4 billion), setting the stage for a potential bidding war. Shares in Hamburger Hafen und Logistik Aktiengesellschaft (HHLA), which runs Germany?s biggest port, soared 49% to a 19-month high as shortly after announcement German logistics billionaire Klaus-Michael Kuehne said he was considering a counter offer. We are examining the submission of a public takeover bid, but would prefer an agreement with the city of Hamburg on privatisation - be it in the direction of Kuehne Holding, or in the direction of Hapag-Lloyd,?

in which he owns a 30% stake, Kuehne told Reuters in an email. Under a deal between MSC and the city of Hamburg, MSC will make a cash offer of EUR 16.75 ($17.99) per share to acquire all listed class A stock in HHLA. A source familiar with the deal gave an enterprise value of EUR 2.6 billion, including EUR 1.4 billion in debt.

Hapag-Lloyd did not comment on a potential bid, saying only that the deal would ?not affect our cooperation with HHLA?. A company source said the fact Hapag-Lloyd would essentially be paying terminal fees to its biggest competitor under the deal was an ?affront?. If Hapag were to join the bidding fray, ?it would certainly be an uphill battle,?

analyst Marc Zeck of investment bank Stifel said, pointing to the difference in size between it and MSC, as well as the additional volume MSC could commit to. Nikolas Mauder at Kepler Cheuvreux said there were concerns about a ?wall? of capital expenditure needed at HHLA, which like other German ports is facing major challenges amid weak foreign demand and fierce competition.

HHLA earlier this year sold a stake in one of its three terminals in Hamburg port to Chinese shipping firm Cosco in a deal that was met with protests within Germany?s government coalition and from abroad over increasing Chinese influence. HHLA said its management board would review the MSC offer.