Euronav has deployed lawyers, seeking to resurrect the nixed merger plans with rival Frontline.
The Belgian tanker giant today revealed it has filed a request for emergency arbitration over John Fredriksen-controlled Frontline’s decision earlier this month to cancel plans for a combination agreement, something that had originally been approved by both boards in July last year. Euronav has also drawn in Fredriksen’s investment vehicles Famatown Finance, Hemen Holding and Geveran Trading into the legal proceedings.
“Euronav reiterates its determination that Frontline’s unilateral action in pursuing the termination of the combination agreement has no basis under the terms of the combination agreement and that Frontline failed to provide a satisfactory reason for its decision to pursue termination,” the company said in a statement.
Responding this morning in a release to the Oslo Bors Frontline said it is currently analysing the arbitration request with its legal advisors. “Frontline once again confirms that its decision to terminate the combination agreement was entirely lawful,” Frontline insisted.
Fredriksen had been building up his stake in Antwerp-based Euronav for 15 months, and found himself in confrontation with the Saverys family for control of the Belgian tanker firm. Both boards of Frontline and Euronav had approved a combination last summer, but a full merger proved impossible as the Saverys’ built up a large enough stake to block the deal. The Saverys have since moved to try and oust the Euronav board, all of whom had voted in favour of the Frontline merger.
