CB&I shareholders vote in favor of Shaw deal
(Reuters) - Chicago Bridge and Iron Co NV (CBI.N) said on Wednesday its shareholders approved the company's proposed takeover of U.S. engineering company Shaw Group Inc SHAW.N.
Doubts about the $3 billion deal surfaced after it was announced in July, with some investors concerned about its provisions and the motivation of Shaw founder and Chief Executive James Bernhard.
One fund, Denali Investors, accuses Bernhard of conflict of interest.
News of the vote approval and a positive earnings forecast helped push shares of CB&I more than 4 percent higher.
"We are not surprised the deal was approved; however, the overwhelming result is a testament to CBI's marketing efforts given initial negative reaction on the part of CBI holders," energy analysts for Capital One Southcoast wrote in a research note.
The deal with Shaw is expected to close in the first quarter of 2013, CB&I said, adding that over 90 percent voted in favor of the deal.
Shaw's shareholders will vote on the takeover on Friday in Louisiana. Any deal requires the support of 75 percent of Shaw's shareholders.
In addition, CB&I forecast profit of between $3.35 and $3.65 per share on revenue of $6.3 billion to $6.7 billion for 2013.
Analysts on average were expecting a profit of $3.45 per share on revenue of $6.24 billion, according to Thomson Reuters I/B/E/S.
Capital One said the forecast, the company's first for next year, was very positive.
The company said the forecast excludes Shaw results and transaction-related costs.
On the New York Stock Exchange, Shaw Group rose 25 cents to $46.15 and CB&I rose $1.90 to $44.47.