Fri, Apr 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Denali Investors sends a letter to Shaw Group demanding fair value over acquisition deal

Thursday, August 16, 2012

Bailey McCann, Opalesque New York: Activist hedge fund, Denali Investors has sent a letter to US-based nuclear power company The Shaw Group saying that the planned acquisition by US-based firm CB&I is not offering a fair value to shareholders. In it, Denali principal, H. Kevin Byun, argues that temporary, "optical" issues are placing false downward pressure on Shaw stock and that the Shaw board is leaving money on the table by not demanding a greater premium. The letter follows another sent to Shaw last year which implored Shaw CEO James M. Bernhard, Jr. to take a more robust approach to creating shareholder and company value.

In all, the CB&I acquisition will total approximately $3bn and create one of the nation's largest energy players. According to energy trade, Environment Analyst, the deal has been unanimously approved by boards at both companies and is expected to be complete by 2013. Under the terms of the deal, Shaw shareholders will receive approximately $46 per share, a figure which Denali argues is well below Shaw's potentia......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance