Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, November 9, 2018

Article Excerpt

MCDERMOTT INTERNATIONAL INC., $8.47, symbol MDR on New York, is a leading engineering, procurement, construction, and installation (EPCI) company focused on executing complex offshore oil-and-gas projects worldwide. The company delivers fixed and floating production facilities, pipelines, and, from concept to commissioning, subsea systems. It operates in more than 54 countries employing roughly 40,000 employees. In May 2018, McDermott acquired Chicago Bridge & Iron for $6 billion in McDermott stock. McDermott shareholders now own 53% of the combined company while Chicago Bridge shareholders own the rest. After the merger closed, McDermott consolidated its shares on a 1-for-3 basis. The Chicago Bridge purchase came after Oslo, Norway-based Subsea 7 attempted to buy McDermott and halt its deal with Chicago Bridge. Subsea 7 then withdrew its $21 a share offer (reflecting the 3-for-1 consolidation) in April 2018. In the three months ended September 30, 2018, McDermott’s revenues rose 138.7%, to $2.29 billion from $959.0 million a year earlier. Sales were higher mostly as a result of…