CBI was purchased by McDermott for the technology Wake people!
Is Deal is bad for both McDermott took on big debt they can't afford!
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Most of the payment is in shares. new debt will be a smaller piece of combined bal sht. McD profits will pay debt. Cbi will be sold in pieces to pay debt off.
McDermott is acquiring CBI for 2.47221 shares of their stock for every 1 share of CBI stock. With the price of both stocks McDermott is acquiring CBI at a break even price with no real value to CBI shareholders. Why would a company transfer ownership to another without any value to the shareholders??? Could it be that management just wants to dump the company due to the excessive debt owed by CBI or could it be that the upper management stands to profit at the expense of the shareholders???? Any thoughts???? Usually as all smart businessmen know when you transfer ownership of an asset usually you do so at a profit and stand to benefit from the transaction rewarding shareholders for the risk they take in buying stock of a corporation. Anyway I think there is an investigation out there against CBI for breaches of fiduciary duty because it appears that this transaction may not be in the best interests of CBI shareholders.
And Shaw will destroy another good company from the inside!
Why would McDermott purchase CB&I just for Technology? Technology by itself was up for sale if memory serves me correctly. I'n no expert but if McDermott was only interested in Technology, they could of just purchased Technology and not CB&I in it's entirety. Just maybe we have a small chance of survival.