Teekay, TORM acquire 83.5% of OMI shares in tender; subsequent offer ends June 5

By Lisa Kerner

Charlotte, N.C., May 29 - Teekay Shipping Corp. and A/S Dampskibsselskabet TORM said preliminary results show that OMI Corp. shareholders tendered 49,762,507 shares, or about 83.5% of all outstanding shares, in the $29.25-per-share tender offer that expired at 5 p.m. ET on May 25.

Payment for the shares will be made on May 31. OMI will also pay a special cash dividend of $0.10 per share on that date.

Teekay and TORM began a subsequent $29.25-per-share offer for all remaining OMI shares that ends at 5 p.m. ET on June 5, according to a company news release.

The companies announced a definitive agreement on April 17 in which Teekay and TORM will equally split the total cost of the transaction of approximately $2.2 billion, including assumed net debt, and will divide OMI's assets equally following the transaction's close, which is expected during the second quarter of 2007.

The Federal Trade Commission and the U.S. Department of Justice have granted early termination of the Hart-Scott-Rodino waiting period in the deal. The offer is conditioned on acceptance from OMI shareholders representing over 50% of the company's outstanding shares.

Bahamas-based Teekay transports seaborne oil and liquefied natural gas.

TORM is a carrier of refined oil products based in Hellerup, Denmark.

OMI, located in Stamford, Conn., owns and operates tankers.

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