International Shipholding weighs options
Mobile, Ala.-based International Shipholding Corp., (ISH) said Friday it is plans to continue to have a special committee comprising outside directors to explore “strategic alternatives.”
ISH's report came in the wake of an announcement Thursday by Liberty Shipping Group that it was ending an offer made last September to purchase all outstanding ISH common stock for $25.75 per share. Liberty, based in Lake Success, N.Y., said ISH had made a draconian demand in a confidentiality agreement, which also included an “outrageous ' demand that we agree to restrict our ability to freely compete with ISH for a period of one year.”
But ISH said it had asked for “customary standstill provisions” and that “contrary to what Liberty stated in its letter, the special committee did not demand that Liberty refrain from competing with the company.”
ISH also said, “Liberty was unwilling to provide a substantive valuation analysis to indicate $25.75 was a bona fide offer and did not provide the special committee with evidence of debt financing for a potential transaction.”
ISH said a special committee of its board of directors, which does not include members of the founding Johnsen family, “is exploring other strategic alternatives with other parties that have each signed a confidentiality agreement with customary standstill provisions.”
Members of the Johnsen family, including Chairman Niels M. Johnsen and Chief Executive Officer Erik L. Johnsen, own about a quarter of company of the company’s stock, compared to Liberty’s 9 percent stake.
ISH said it plans to release its operating results for the fourth quarter and full year 2008 by the end of January 2009.