US-listed Israeli container carrier ZIM was this week reported tohave hired investment specialist Evercore to advise the company followingearlier indications that management backed by Ray Shipping? Rami Ungar couldmount a takeover bid.
Investors greeted the news with enthusiasm, and the carrier?shares jumped on the news: the stock finished Monday more than 7% up onFriday? close price. The thinking behind the joint buyout bid remains somewhatunclear, however, especially with the container market headed towards adifficult period of lower rates, increasing capacity, and continuedgeopolitical instability.
ZIM? own full-year fore raises the possibility of losses inH2, with operating income expected between ?SD 62 M and +USD 338 for theperiod, with Q4 regarded as highly unpredic.
Reports suggested ZIM had hired the investment advisor, in part,because the offer from CEO Eli Glickman and finance partner Rami Unger isexpected to be below expectations.
When news first broke in mid August of the potential buyout, thegroup was said to be offering USD 20 per share for the ZIM stock, a near 30%premium on its then share price, and effectively valuing the company at up toUSD 2.4 bn. The carrier? market cap has since slipped from its then USD 1.87bn to USD 1.76 bn on Monday.
