Euronav shares rise as it disputes Frontline's merger breakup

Frontline

11/01/2023 14:29

** Shares in Euronav  EUAV.BR  rise 4.7% after a brief
suspension, as the Belgian oil tanker disputes Oslo-listed rival
Frontline's  FRO.OL  right to terminate the merger deal
    ** "Euronav has determined that Frontline's unilateral
action in pursuing the termination of the combination agreement
has no basis under (its) terms ... and that Frontline failed to
provide a satisfactory reason for its decision," Euronav says
    ** Frontline's CEO however says there are valid grounds for
the termination, which he said was definitive, as "certain
conditions and assumptions under the agreement were not met"
    ** Euronav, whose shares closed 17.6% down on Tuesday, says
it will take "appropriate action" including but not limited to
potential litigation or arbitration
    ** As the news of the $4.2 billion merger breakup raised
questions on both companies' future, Jones Research points to
Euronav's fleet strengths and ups it to "buy" from "hold"
    ** "The geographic diversity ... remains a major positive,"
the broker says, with demand from Arabian Gulf, West African,
North Sea, Caribbean Gulf and Gulf of Mexico crude oil
    ** The brokerage also notes Euronav has reduced the average
age of its fleet, while more new vessels are still to be
delivered, allowing it to grow to 70 vessels by year-end 2024
 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))