Stelmar rejects OMI’s takeover bid
Stock market-listed Stelmar Shipping Ltd. Monday rejected a $630-million unsolicited takeover bid made by fellow tanker shipping group OMI Corp.
Stelmar, headquartered in Athens, Greece, said its board of directors has unanimously determined that OMI’s proposal for a possible business combination is not in the best interests of all Stelmar shareholders, and the board decided not to enter into discussions with OMI regarding its proposal.
Stamford, Conn.-based OMI replied that it was “extremely disappointed” by Stelmar’s rejection without first discussing it. OMI said that it would evaluate its options.
The takeover was backed by Haji-Ioannou and his family, who together control 37 percent of Stelmar’s shares.
The takeover rejection sent Stelmar’s stock down 2.5 percent on Monday to close at $31.28 a share on the New York stock exchange. OMI’s stock increased 4.4 percent, to $11.69.