Marine Log

October 12, 2006

Prosafe won't sell Petrojarl stake

Is Petrojarl--the largest operator of FPSO's in the North Sea--about to become the prize in a takeover battle?

The board of directors of Prosafe ASA today announced that it has decided to decline the mandatory offer for the purchase of shares of Petrojarl ASA, put forward by TPO Investments AS, a wholly owned subsidiary of Teekay Shipping Corporation.

Prosafe announced on August 22 that it had acquired 29.7 percent of Petrojarl's shares, then on August 25 said it intended to announce a merger offer.

On August 31, Teekay said it had acquired 40 percent of the Petrojarl shares and followed this on September 18 by announcing a mandatory bid for 100 percent of the shares.