Frontline To Bid For Mosvold Shipping

Norwegian crude oil tanker group Frontline will bid 5.5 Norwegian crowns a share, (a total of about $46.53 million), for its tiny rival Mosvold Shipping. Frontline said in a statement that the merger would continue consolidation of the fragmented tanker industry. It said the offer represented a 34-percent premium over Mosvold's average closing price for the last 30 days on the Oslo stock exchange. It already controls 12 percent of Bermuda-registered Mosvold. Mosvold's fleet comprises two 1970s VLCCs and three on order. Frontline said that a main condition was that at least 95 percent of Mosvold shareholders accept the offer. The offer document would be sent to all Mosvold shareholders this week with an acceptance period of two weeks.