- McDermott (MDR -5.7%) urges shareholders to vote for the proposed merger with CB&I (CBI -7.9%) amid objections by one company which owns nearly 2% of MDR shares.
- Asset management firm Hotchkis & Wiley yesterday sent a letter to MDR that was critical of the merger and said it planned to vote against the deal as currently structured.
- Since the deal was announced, Hotchkis & Wiley says "CB&I announced troubling results that increase our worry that the business will take longer to fix. The higher risk is also lowering the upside, as the crisis at CB&I is driving the bond market to price McDermott’s unsecured notes to finance the deal at over 10%."
- In response, MDR says the merger will "deliver compelling value, make the combined business more competitive and enable a more consistent, predictable performance through market cycles."
- Now read: Does General Electric (NYSE:GE) Do A Re-Think After The Baker Hughes And McDermott Joint Venture?
Original article