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(From Lloyds List)
Byline: Scramble for such prizes as ports revives echoes of dotcom era, writes Tony Gray
The scramble for infrastructure assets, such as ports, is creating a pricing bubble of dotcom proportions, a leading credit rating agency has warned.
Standard ' Poor's argues that investors could face being exposed to 'over-priced and over-leveraged assets'.
This year has witnessed more than $145bn of merger and acquisition activity in the infrastructure sector, a 'stunning' 180% increase since 2000.
'There are no signs that 2007 will be different,' the agency says.
The recent 'breathtaking' rise of global infrastructure funds, Standard ' Poor's explains, has left banks, private equity groups and investment managers struggling to buy suitable assets in the sector.