Frontline bids for General Maritime

Tuesday, December 06, 2005
Bloomberg has reported that shares of General Maritime Corp., the second-largest US oil-tanker owner, may not rise much further after Bermuda-based Frontline Ltd. raised its stake in the company and said it would seek talks to combine the businesses, JPMorgan Chase & Co. said.General Maritime’s shares are trading at 12 percent more than $36.70, which is JPMorgan’s estimated net asset value for the company at the end of 2006, analysts Jonathan Chappell and Glen Muller said in a report last week. Net asset value is the market value of the company’s vessels less debt. A takeover of General Maritime would be the biggest ever in the oil-tanker industry, based on today’s valuations. Frontline, the world’s biggest oil-tanker company by capacity, bought 3.76 million shares in General Maritime for $139 million between September 21 and November 30, according to a filing on Thursday with the U.S. Securities and Exchange Commission. The Hamilton, Bermuda-based company now holds 3.86 million shares equal to a ten percent stake, the filing said. Golar LNG Ltd., a Bermuda-based owner of ships carrying liquefied natural gas, won a five-year contract to provide three ships to Royal Dutch Shell Plc. The shares rose to a three-month high. Shell Tankers Ltd. will charter the one-year-old Golar Viking and two new LNG ships slated for shipyard completion next year, Golar said in a statement on Friday. Shell International Trading and Shipping Company Ltd. will become technical manager of all three vessels. Financial details weren’t disclosed. “This is very positive for Golar,” said Bjoern Giaever, an analyst at DnB NOR Markets in Oslo who rates the stock a “buy”, in an interview. Golar, created by Norwegian billionaire John Fredriksen, has wagered $1.1 billion on liquefied natural gas since 2001, buying seven LNG tankers without first signing contracts for their use. Three of the four tankers completed have had no long-term contracts generating income to cover their building costs.
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Ultra-deepwater Drillship 'Maersk Valiant' Delivered

Maersk Drilling advises that its second new drillship, 'Maersk Valiant', has been delivered from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea.

Miami Tugboat Oil Spill: Coast Guard Respond

The US Coast Guard says that its crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami, following a leak discovered aboard the 95-foot tugboat 'Neptune'.

 
 
Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1299 sec (8 req/sec)