Friday, March 19, 2010

Berlian Tanker may cancel acquisition plans

PT Berlian Laju Tanker Tbk, Indonesia's biggest shipping company, withdrew an offer valued at about $160 million to buy Camillo Eitzen & Co.
The company decision made after failing to agree on terms. The shipping line withdrew the proposal because there was no conclusive results from negosiations Berlian Tanker bid for Oslo-based CECO in October to double sales and become the world's largest operator of chemical tankers.
The company subsequently reduced its offer after failing to win Indonesian regulatory approval to give CECO shareholders convertible bonds as part of the deal.
The acquisition would have boosted Berlian Tanker;s fleet of owned or operated vessels to 157 chemical tankers, 14 oil tankers, 42 gas tankers and as many as 60 bulk carriers.
Berlian Tanker initially offered CECO shareholders mandatory exchangeable bonds equivalent to 25 kroner per share.
In December, that was reduced to an offer valued at 23.5 kroner per share, comprising stock in the expanded company and of shares in Eitzen Maritime Services ASA. RS Platou AS advised Berlian Laju, while Carnegie ASA and ABG Sundal Collier Holding ASA advised CECO.

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