Rebuffed OMI withdraws takeover bid for Stelmar
Stamford, Conn.-based tanker shipowner OMI Corp. said on Wednesday that it has withdrawn its offer to merge with Stelmar Shipping, based in Athens, Greece, after Stelmar’s rejection of its proposal and its decision not to discuss it.
“Given the Stelmar board’s position and our desire to avoid a costly and protracted process, we have determined that withdrawing our offer is the best course of action,” said Craig H. Stevenson, chairman and chief executive officer of OMI.
OMI had proposed a stock-for-stock takeover, valued at $630 million, under which Stelmar shareholders would have received about 3.1 shares of OMI for each share of Stelmar. Alternatively, OMI would have been prepared to provide up to 25 percent of the proposed stock consideration in cash.
Stelmar Shipping rejected the takeover bid on Monday.
Both Stelmar and OMI are listed on the New York stock exchange.