Norwegian shipping group DOF ASA said on Monday that uncertainty in the financial market had forced it to re-evaluate a planned buyout of offshore services group DOF Subsea.
DOF ASA, which owns 57 percent of DOF Subsea, had said on July 10 that it and a financial partner had agreed to launch a bid of 45 crowns per share to buy out minority shareholders.
The partner, private equity group First Reserve Corporation, has completed due diligence and DOF and FRC are now in final discussions, DOF ASA said in a statement.
"Based on the discussions of the terms and conditions, and as a result of the prevailing uncertainties in the financial markets, it has become clear to DOF that a potential transaction (if any) is unlikely to materialise at the terms and conditions set out in the announcement dated 10 July 2008," DOF ASA said.
DOF said it would inform the market soon about the outcome of its discussions.
© 2008 - Reuters