EMPLOYEES at Medway Ports in Sheerness Docks face an uncertain future following news that a takeover bid for its parent company is being prepared.

Medway Ports is owned by Mersey Docks and Harbour which was the subject of an approach from private investment group CVC Capital.

No bid has yet been received, but rumours are rife that a takeover could involve the break up and selling off of the Docks owned by Mersey Docks.

Medway Ports' spokeswoman Maria Clarke said: "We received a letter indicating that an approach has been made but no firm bid has been made.

"When venture capitalists buy a group of companies they often break them up and sell them off in bits to make a profit - that's the nature of their business.

"Obviously the first things on anyone's mind is job security, but we are not going to know anything until a firm bid is made and under takeover rules we cannot say anything."

Any company planning to buy Mersey Docks, which owns Liverpool and Heysham in the north and Sheerness and Chatham in the south, would be expected to stump up between £700m and £1bn.

Apart from its ports, the company also operates four marine terminals and two container shipping lines and was valued at £716m on the London Stock Exchange.

CVC is an independent buy-out firm founded in 1981 that manages around £5bn in equity capital and has made more than 250 acquisitions to a total value of more than £20bn.

In Britain, it has acquired a number of companies including major industry leaders such as Debenhams, Kwik-Fit and Halfords.

Mersey Docks' turnover reached £528.7m last year and its half-year pre-tax profits in 2004 were £28m.

It employs more than 1,100 and its strength has made it a prime takeover target.

A financial analyst told the Financial Times last week: "It is a first-class business. It does not surprise me that someone is having a look at it."

Shares soared to 920p on November 11 after news leaked out that an approach had been made to the company.

CVC declined to comment.