Monday, September 25, 2006
Position Updates: TUG
1. Damn I regret selling some of my TUG.
2. Damn I regret selling some of my TUG.
Overseas Shipholding Grp-OSG to acquire Maritrans-TUG for $455 millionOverseas Shipholding Group, Inc. (OSG) and Maritrans Inc. (TUG) jointly announced today that they have entered into a definitive merger agreement pursuant to which OSG will acquire Maritrans Inc., a leading U.S. Flag crude oil and petroleum product shipping company that owns and operates one of the largest fleets of double hull vessels serving the East coast and U.S. Gulf coast trades. Under the terms of the merger agreement, unanimously approved by the Boards of Directors of each company, OSG will acquire Maritrans in an all-cash transaction for $37.50 per share. The transaction is valued at approximately $455 million based on approximately 12 million shares outstanding and the assumption of net debt outstanding as of June 30, 2006. OSG will finance the acquisition through a combination of available cash and borrowings under existing credit facilities. The transaction is expected to be immediately accretive to OSG's earnings per share, before considering any transaction synergies.
NOTE: Other tanker stocks might bet a boost- VLCCF, GMR, TOPT, ALEX