(Repeats from Sunday)
OSLO May 7 Tanker firm DHT Holdings
rejected on Sunday a fifth takeover proposal from shipping
tycoon John Fredriksen's Frontline, calling the $500
million all-share bid "woefully inadequate".
Frontline's plan to form the world's largest private oil
tanker group was first revealed in January when DHT said it had
received an unsolicited offer, which it later rejected.
The initial bid, offering to issue 0.725 Frontline shares in
exchange for each share of DHT, was eventually raised to a ratio
of 0.8, but was again turned down.
"The bottom line is that Frontline's proposed takeover of
DHT is so woefully inadequate that we do not believe further
engagement will result in a fair offer for the DHT franchise,"
the U.S.-listed company said in a statement on Sunday.
Frontline holds a 14.5 percent stake in DHT.
While DHT's assets would contribute almost half the net
asset value of a combined company and more than 45 percent of
2018 earnings, the takeover offer would only give DHT's
shareholders a 40 percent stake, the board argued.
"We have consistently told you that the starting point for
any discussion is a fair and balanced analysis of fleet
value. Payment of a control premium would come on top of such a
fundamental and intrinsic analysis," DHT said.
In late March, DHT struck a defensive deal with privately
owned oil and gas shipping firm BW Group to buy 11
crude tankers, allowing BW to become its biggest shareholder
with a stake of up to 45 percent.
Calling the deal unfair, Frontline has sought legal
injunctions and said last week that the high court in the
Marshall Islands, where DHT is incorporated, had agreed to hear
its complaint on May 17.
Frontline was not immediately available for comment.
(Reporting by Terje Solsvik; Editing by Susan Fenton)