ShawCor shares tumble nearly 16 pct as deal hopes fade

Tue Dec 4, 2012 10:01am EST
 
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Dec 4 (Reuters) - Shares of ShawCor Ltd fell 15.6 percent on Tuesday after the energy services provider said it was unlikely to sell itself following a review of strategic alternatives.

The company, which has a dominant position in niche pipeline services to the oil and gas industry, put itself up for sale in September after controlling shareholder Virginia Shaw informed the board she was prepared to consider a sale of her shares as part of a sale of the company.

In a brief statement issued on Monday, the company said a sale was unlikely.

"The special committee and the board have concluded that an acceptable sale transaction for all of the shares of ShawCor, while always a possibility, is highly unlikely at this time," the company said.

ShawCor, which provides pipeline-coating, corrosion-protection, pipe-inspection, tubing and other services to offshore oil and gas drillers, said a special committee will continue to review and consider a range of strategic alternatives. It cautioned there was no assurance that any transaction would occur.

ShawCor shares tumbled C$7.15 to C$38.79 in early trading on Tuesday on the Toronto Stock Exchange. (Reporting by Euan Rocha; Editing by Jeffrey Benkoe)