Sector News

McDermott still committed to CB&I deal, confirms rejection of Subsea 7 buyout bid

April 23, 2018
Chemical Value Chain

McDermott International Inc. confirmed that it had rejected an unsolicited buyout bid by Norway-based Subsea 7 S.A., adding that it remains “fully committed” to completing the deal to buy Chicago Bridge & Iron as planned.

The engineering and construction company for the energy industry confirmed that Subsea’s buyout bid of $7 a share, which was 15.7% above Friday’s closing price of $6.05, was subject to the termination of the CB&I merger deal. McDermott said after it “carefully reviewed and considered” the Subsea 7 bid, it still believes the CB&I deal, which is expected to close in May 2018, is in the best interest of McDermott shareholders.

McDermott’s stock ran up 18.2% in premarket trade, while CB&I shares tumbled 13.6%. Over the past three months, McDermott’s stock has plunged 23.0% while the S&P 500 has lost 6.0%.

By Tomi Kilgore

Source: MarketWatch

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