EC Clears Aspects of Aker Maritime/Kvaerner Deal
The European Commission issued a Press Release reporting that it had concluded that the impact on the shipbuilding sector of the proposed acquisition Kvaerner by Aker Maritime was acceptable. The EC has referred the oil and gas aspects of the deal to the Norwegian Competition Authority for examination. Source: HK Law
Kvaerner Says It Won't Raise Takeover Bid
Anglo-Norwegian industry group Kvaerner said on Friday that it would not raise or extend its $725 million takeover bid for oil and gas services firm Aker Maritime Kvaerner's offer of 0.79 new Kvaerner shares for each Aker Maritime share expires today, at the close of the Oslo bourse. Aker Maritime has rejected the bid as too low. Kvaerner chairman Christian Bjelland reportedly told shareholders at a meeting today that the company's bid remained unchanged. The company had called the meeting for shareholders to vote over a controversial proposal to lower the threshold for mandatory offers to 30 percent from 40. A majority supported a lower threshold, company officials said after the meeting.
EC Probes Further Into Aker Maritime's Transaction With Kvaerner
The European Commission said on Thursday it had opened an in-depth four-month investigation into plans by Norway's Aker Maritime ASA to buy a 26.7 percent stake in Anglo-Norwegian engineering firm Kvaerner. "The Commission's initial investigation has shown that the transaction may create or strengthen a dominant position on the markets for contracts for construction of oil and gas platforms (EPCI contracts) as well as the modification and maintenance of such platforms," the Commission said in a statement. It said the combined company would have a high market share in both markets particularly on the Norwegian Continental Shelf of the North Sea.
Kvaerner Posts Good Results
Kvaerner posted better-than-expected 2000 profits and outlined plans to split into three companies, hoisting its share up more than five percent. The company said pre-tax profits totaled 513 million crowns ($56.69 million) last year compared with a loss of 5.5 billion crowns in 1999 when the group took heavy provisions for restructuring. Analysts had expected a profit of 441 million crowns. "The report was better than expected, and splitting the company seems reasonable," one trader said. Kvaerner also said it expected earnings to improve further in 2001. "We are now searching for growth opportunities in our chosen areas," chief executive Kjell Almskog said in a statement.
Kvaerner Says It Has Common Interests With Aker Maritime
Kvaerner's chief official Kjell Almskog reportedly said a possible union between Kvaerner's Oil & Gas division and Aker Maritime is an exciting prospect but only theoretical, after the company announced that the two firms have common interests and a complementary spectrum of products. Aker Maritime's majority shareholder, Aker RGI, has said that it is looking for a potential partner or buyer of Aker Maritime.
