Jan 11 (Reuters) – Belgian oil tanker and storage group Euronav ( EUAV.BR ) is contesting Frontline’s ( FRO.OL ) proper to terminate a merger settlement between the businesses and is contemplating its choices, together with arbitration and litigation, it stated on Wednesday. .
Oslo-listed oil provider Frontline stated Monday it’s canceling the $4.2 billion mixture deal that might have created the world’s largest publicly traded tanker firm.
“Euronav has decided that Frontline’s unilateral motion in pursuing the termination of the mix settlement has no foundation beneath (its) phrases … and that Frontline has not supplied a passable rationale for its choice,” the Antwerp-based group stated in a declaration .
Nevertheless, Frontline believes there are legitimate causes for the termination, CEO Lars Barstad stated in an electronic mail to Reuters, and that the choice to cancel the deal was ultimate.
“After all, there may be at all times the chance of variations of opinion when an settlement is terminated by one of many events,” he added.
Euronav stated it was analyzing its choices and would take “applicable measures … together with however not restricted to potential litigation and/or arbitration”.
Its shares, which fell about 20% on the information on Tuesday, have been up 4.9% by 1348 GMT on Wednesday after a quick buying and selling suspension.
“Euronav has complied with its obligations beneath the mix settlement and has completed every part in its energy to make this transaction a hit,” the group added.
Requested concerning the causes for the withdrawal of the merger, Frontline’s Barstad stated that “sure circumstances and preconditions beneath the settlement weren’t met”.
Reporting by Juliette Portala Enhancing by Mark Potter and David Goodman
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