Monday, July 30, 2012

Investopedia: CB&I's Acquisition Of Shaw Is Shocking And Awesome

CB&I (NYSE:CBI) announced on July 30 that it will acquire Shaw Group (NYSE:SHAW) for $3 billion, or $46 per Shaw share. The deal will be made up of $41 per share in cash and $5 in stock (0.13 shares of CB&I), and values Shaw at a 72% premium to July 27's close. The deal price also carries a seven times multiple to the 2012 EBITDA multiple for Shaw - a slight premium to the broader sector.

To execute the deal, CB&I will need to raise about $1.9 billion in debt financing, but the company expects the deal to be accretive almost immediately.

Continue here:
http://stocks.investopedia.com/stock-analysis/2012/CBIs-Acquisition-Of-Shaw-Is-Shocking-And-Awesome-CBI-SHAW-JEC-FLR0730.aspx

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