McDermott management stands firm in face of growing Subsea 7 overtures

Top management at American offshore firm McDermott International remain resolute against the takeover overtures from Kristian Siem’s Subsea 7. The board has reiterated it is not in favour of the takeover, which among other things, demands McDermott terminate its planned business combination agreement with CB&I.

“McDermott is fully committed to completing the transformational combination with CB&I,” the company said in its latest dismissal of the Subsea 7 offer, which values McDermott at nearly $2bn. McDermott anticipates the merger with CB&I will be completed next month.

A special stockholders meeting has been convened by McDermott on May 2.

For its part, Subsea 7 said yesterday it was still keen to pursue the takeover, even possibly upping its bid.

“Subsea 7 is open to considering amending its proposal if it can discover additional value through discussions with the McDermott management team,” Subsea 7 said in a release to the Oslo Bors.

Jean Cahuzac, Subsea 7’s CEO stated: “A combination with McDermott is supported by compelling industrial logic. We would welcome the opportunity to engage with McDermott’s board of directors and management to discuss our proposal and the substantial upside opportunity represented by ongoing participation in the equity, with a view to achieving a combination that would be in the best interests of our respective shareholders.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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