Texas firm sees potential in Baton Rouge-based Shaw Group
Chris Miller Reporting
Louisiana is losing another Fortune 500 company, if a proposed buyout goes through. A Texas company apparently found the Baton Rouge-based Shaw Group too good a deal to pass up.
It's not like the company CB&I is getting Shaw for a steal. CB&I's proposal is to acquire Shaw for $3.04 billion in cash and stock. The deal will pay $41 cash and $5 in CB&I stock for each share of Shaw stock. Shaw Group closed Friday at a little under 27 dollars a share.
Tulane University business professor Mark Rosa says the buying company saw great potential.
"It's not a very old company, but it had gotten to be one of the largest in the state -- Fortune 500 company. It's just has been very successful, and CB&I recognized that," Rosa said. "Clearly CB&I recognize the value this firm has in it long term and were willing to pay up for it."
On it's website, CB&I claims to have 23,000 employees worldwide. Shaw Group claims 27,000 employees. According to CB&I, the Shaw buyout will create "one of the most complete energy focused technology, engineering, procurement, fabrication, construction maintenance and associated services companies in the world," employing about 50,000 people. The deal, which still needs shareholder and regulatory approval, would be complete in 2013.