McDermott's stock soars, Chicago Bridge shares sink after Subsea 7 bids to buy McDermott
Shares of McDermott International Inc. soared 19% in premarket trade Monday, while shares of Chicago Bridge & Iron Co. , which has agreed to be acquired by McDermott, sank 12% after Norway-based oil-services company Subsea 7 S.A. reportedly made a bid to buy McDermott. Subsea said it made a buyout bid of $7 a share for McDermott, which was 15.7% above Friday's closing price, and values McDermott at about $2.0 billion, but McDermott rejected the deal, The Wall Street Journal reported. Subsea said the deal was subject to the termination of McDermott's pending merger with Chicago Bridge & Iron, the WSJ report said. In December, McDermott agreed to buy Chicago Bridge in a deal valued at $6 billion. McDermott's stock had lost 8.1% year to date through Friday, while Chicago Bridge shares had shed 9.6% and the S&P 500 had slipped 0.1%.
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