P&O To Float Bulk Carrier Unit For $190M
Peninsular and Oriental Steam Navigation Co. (P&O) expects its Associated Bulk Carriers unit to carry a price tag of around $190 million when it floats on the Oslo Stock Exchange in July. Shares in ABC, one of the world's largest independently owned operators of Capesize bulk carriers, will be priced at between 40 and 65 Norwegian crowns, according to the prospectus for the issue. Peter Smith, P&O director of corporate affairs, said ABC's relatively young fleet means it could use its newfound currency of shares to seek out potential acquisitions in a shipping industry ripe for consolidation. "There isn't a need for them to invest heavily, so they have the strength now to go out and make the most of their market-leading position," he said.
Molasses Tanker With Same Flag, Class As Erika Detained In France
A 27-year-old molasses tanker escorted to Falmouth in the U.K. after safety defects were found was flagged and classed by the same bodies responsible for the Erika, the tanker that spilled oil on French beaches last month. The Malta-flagged Santana 111, which was detained by French port inspectors, was classed fit to sail by Italian classification society RINA from February 1999, a RINA official said. Erika, which broke up in December causing massive pollution to French beaches, was also registered by Malta and RINA. RINA communications manager Gianfranco Damilano pointed out that the Santana 111 was used for carrying molasses, indicating that if it broke up it would not do the same damage as an oil tanker. "This is not the same as the Erika," he said.
