COSCO may make a bid of more than $4 billion for Hong Kong-based Orient Overseas Container Line, according to various media reports.
The share price of the parent company of Orient Overseas Container Line (OOCL) continues to climb, mirroring frenzied speculation that the Hong Kong-based liner company may be acquired.
The latest articles include one in the Wall Street Journal that quotes unnamed sources that say COSCO is “in the process of preparing a bid worth more than $4 billion” for OOCL. Similar reports about COSCO’s interest have appeared in publications such as Tradewinds and the Chinese news site Caixin.
COSCO and OOCL are both members of the Ocean Alliance, a vessel sharing agreement that is scheduled to launch in April. The other two members of the alliance – CMA CGM and Evergreen – have also been mentioned as possible acquirers or merger partners of OOCL.
Last week, Drewry Financial Research Center speculated that CMA CGM is “best positioned among major carriers to be a perfect suitor for OOIL.”
Whether the rumors about a purchase of OOCL are true or not, the stock price of its parent company, Orient Overseas (International) Ltd. (OOIL), has been on a tear, climbing to 42.10 Hong Kong dollars (U.S. $5.43), up 33 percent from 31.55 Hong Kong dollars on Dec. 23.
Decisions about the future of the company are in the hands of the family of chief executive C.C. Tung, who holds a voting right for 68.7 percent of OOIL’s stock, according to its annual report last year.
Rumors about OOCL acquisition continue to heat up
