McDermott International (MDR)-- Deal Speculation Could Be Credible Given MDR''s Attractive Assets/Valuation
|Date:||October 07, 2011|
|Rating:||buy (at time of publication)|
|Company:||McDermott International Inc|
|Vertical:||Engineering & Construction|
|Price Target:||$ 21.00 (at time of publication)|
Volatile Trading on Takeover Speculation – McDermott International cancelled an appearance at a competitor conference on Tuesday, fueling speculation that an imminent takeover was in the cards. Since Monday, shares rose 19.9% versus the peer group (ex MDR) at 9.2% and the S&P 500 at 3%. Notably, shares swung from an 8.4% rise mid-day on Thursday to a 3.3% drop by the end of the day as news reports surfaced that MDR agreed to a joint venture in Brazil, leading to the presumption that this was the driver of McDermott''s cancelled appearance.