Page 11: of Maritime Reporter Magazine (August 1997)

Zelebrity Seals Deal With

KCI

A Celebrity Cruises/Royal

Caribbean International (RCI) definitive merger agreement was sealed in the first week of July after the former upped its bid for the five-ship cruise line by $15 mil- lion, after Carnival Corp.'s hostile offer. The agreement is still sub- ject to regulatory clearance.

Carnival withdrew its bid after its stock prices plummeted follow- ing its offer to take on Celebrity's $800 million debt.

Detroit Diesel And Outboard

Marine Propose Merger

On July 9, Detroit Diesel Corp. (DDC) and Outboard Marine Corp. (OMC) signed a definitive agree- ment for DDC to acquire OMC in a transaction valued at $500 million, including the assumption of OMC's $180 million debt.

DDC will shortly commence a two-step transaction to acquire the outstanding common shares of

OMC for $16 per share. The agree- ment, which is subject to custom- ary conditions, provides for the merger of a newly-formed sub- sidiary of DDC with OMC follow- ing tender offer completion.

Detroit Diesel Chairman Roger

Penske said, "Our objective is to further expand our worldwide marine capabilities beyond diesel engines with the OMC enterprises ... We look forward to the prospect of further developing OMC's pro- prietary FICHT(TM) fuel injection technology to optimize the perfor- mance, fuel economy and emis- sions capability for the next gener- ation of marine and other engines."

Combined net revenues for

Detroit Diesel and Outboard

Marine Corporation in 1996 would have been $3.2 billion.

For more information on

Detroit Diesel

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Portsmouth Naval Yard

Work Contracted Out

Fay, Spofford & Thorndike, Inc. of Burlington, Maine, was selected to design repairs to drydocks and bridges at the Portsmouth Naval

Shipyard in Kittery, Maine.

Work will include overhaul of the drydock dewatering system,

August, 1997 including pumps and valves.

Avondale Contracts For Two

Crude Carriers

Avondale Industries, Inc. signed a $332 million contract with ARCO

Marine, Inc. of Long Beach, Calif, for the construction of two 125,000-dwt crude carriers, with an option for three more ships.

Detail design of the ships is to begin immediately with construc- tion scheduled to start in

December and delivery of the first ship expected in the first quarter of 2000. "This is a significant event in our strategic plan for increasing our commercial competitiveness and obtaining a more desirable balance of our work between commercial and military contracts," said

Avondale CEO A1 Bossier, Jr.

For more information on Avondale

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