Shaw sets holder meeting for contentious CB&I deal

HOUSTON Tue Nov 20, 2012 4:45pm EST

HOUSTON Nov 20 (Reuters) - mrgShaw Group Inc on Tuesday said its shareholders would meet on Dec. 21 to approve Chicago Bridge and Iron's proposed takeover of the U.S. engineering company.

Doubts about the $3 billion deal have surfaced since it was announced in July, with some investors concerned about its provisions and the motivation of Shaw founder, chairman and chief executive James Bernhard.

One fund, Denali Investors, accuses Bernhard of conflicts of interest.

In a September letter to independent directors, Denali said Shaw's chairman and chief executive, James Bernhard, seemed to want to close the deal early next year to allow him to run for the U.S. Senate or for governor of Louisiana, where Shaw is based.

Some investors have sued, alleging breached of fiduciary duty but Shaw said those lawsuits have no merit.

The shareholder meeting will be held in Baton Rouge, Louisiana at Shaw's headquarters. A deal requires the support of 75 percent of Shaw's shareholders.

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