In the ongoing battle between DHT and Frontline for control of the New York Stock Exchange tanker owner, the unimproved offer 0.8 shares in Frontline for each DHT share by the John Fredriksen controlled shipowner was unanimously rejected.
DHT published a copy of a letter to Frontline ceo Robert Macleod with which it said: “Our hope is that-with a better understanding of the total inadequacy of your offer-we can all turn our focus to areas more productive for our respective businesses.”
The letter stated: “we did not build this company simply to hand it over to you on the cheap.” By DHT’s estimates its fleet would contribute nearly 50% of the aggregate net asset value (NAV) of a combined company.
“We have consistently told you that the starting point for any discussion is a fair and balanced analysis of fleet value. Payment of a control premium would come on top of such a fundamental and intrinsic analysis.”
Frontline’s attempts to block DHT’s purchase of BW Group’s VLCC fleet, with the latter taking a 33% stake in DHT, were described as “gamesmanship”.
“First you tried to block our purchase of BW's VLCCs in New York. The New York justice not only denied your request, but even repudiated the substance of your argument, noting that you had failed to establish a probability of success on the merits.
“Next, having been chastised in New York, you sought another emergency order in yet another forum, and failed again. Your tactics have been pure gamesmanship and not designed to get to the core of your allegations, which are wholly without merit.”
The letter concluded: “You have claimed, multiple times, that your proposal is final. We have taken you at your word on this point. We believe that it is time for both Frontline and DHT to turn our attentions to more productive endeavors.”
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