International Shipholding blames Liberty Shipping for failure of potential merger

By Lisa Kerner

Charlotte, N.C., Jan. 16 - International Shipholding Corp., responding to Liberty Shipping Group LLC's withdrawal of its Sept. 2 unsolicited offer to buy the company, said Liberty was unwilling to agree to provisions in a confidentiality and standstill agreement.

In addition, Liberty was unwilling to provide a substantive valuation analysis to support its offer and failed to provide International Shipholding's special committee with evidence of debt financing for a potential transaction, the company said.

The special committee believes that Liberty, a 9.1% shareholder, did not prove that its intent was other than to gain access to material non-public information and take control of International Shipholding without paying a control premium to the company's shareholders.

International Shipholding said its special committee is exploring strategic alternatives with parties that have signed a confidentiality agreement that contains customary standstill provisions.

Liberty said previously it withdrew the proposed $25.75-per-share offer because International Shipholding's board of directors repeatedly refused to engage in serious discussions and denied Liberty access to non-public information.

Mobile, Ala.-based International Shipholding provides international and domestic maritime transportation services.

Liberty is a Lake Success, N.Y.-based owner and operator of dry bulk vessels.

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