Teekay, TORM to buy, split OMI |
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Tue, 17 Apr 2007 23:12
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NEW YORK (AP) - Teekay Shipping Corp., which owns and operates one of the world's largest fleets of crude oil tankers, said Tuesday it would join with Danish product tanker operator TORM to acquire rival OMI Corp. for about $2.2 billion.The purchase price includes an undisclosed amount of debt and equals about $29.25 per share. Teekay and TORM, which plan to equally split the total cost of the transaction, will make a tender offer to OMI shareholders before April 27. The OMI board of directors has approved the deal.Upon closing, Teekay and TORM will divide the assets of OMI equally. Teekay will get OMI's Suezmax operations as well as eight product tankers. TORM will receive the remaining 26 product tankers.Shares of OMI climbed 83 cents to $37.92 in after-hours electronic trading, having closed earlier at $37.09 on the New York Stock Exchange. Shares of Teekay closed down 38 cents at $55.89 on the NYSE, while TORM finished the session ahead $1.85 at $73.42 on the Nasdaq Stock Market.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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