MC Shipping higher on news of buyout offer
Shares of MC Shipping Inc. (AMEX: MCX) have sailed into positive territory on news the operator of second-hand vessels is being purchased by a private-equity affiliate of investment bank Bear, Stearns & Co. Inc. (NYSE: BSC).
The newly formed entity will pay $14.25 per share in cash, or about $284 million, for MC Shipping, according to an announcement after the start of trading. That’s 19.6% above the stock’s closing price of $12.10 on Friday, July 27.
A special meeting of MC Shipping shareholders has been scheduled for September 5 to vote on the merger agreement. The merger agreement contains a provision that allows for the solicitation of other bids over the next 35 days.
At 2:31 p.m. ET, the stock had added $2.04, or 17%, to $13.95, near its 52-week high of $13.99, which was set on July 24. The 52-week low of $8.94 was established on Oct. 18.
