UPDATE 1-International Shipholding says co to stay independent

* Completes Strategic review

* Says to remain independent

Feb 25 (Reuters) - International Shipholding Corp (ISH.N), an operator of flag vessels, said it decided to remain independent, following a review of strategic alternatives.

Last month, Liberty Shipping Group LLC, a drybulk operator based in Lake Success, New York, withdrew its offer to buy the company for about $308 million, or $25.75 per share.

International Shipholding said the special committee, formed in association with financial advisor Lazard, concluded that at this time, the company should remain independent and continue to execute its business strategy.

Shares of the Mobile, Alabama-based company closed at $17.71 Wednesday on the New York Stock Exchange. (Reporting by Anurag Kotoky in Bangalore, Editing by Dinesh Nair) ((anurag.kotoky@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: anurag.kotoky.thomsonreuters.com@reuters.net))