So did they or didn’t they?
Greek container ship owner Danaos is disputing that it made a formal bid for Oaktree Capital Management’s shares in New York-listed Eagle Bulk Shipping, which ultimately were bought by Eagle Bulk.
The denial in a securities filing after the close of trading on Thursday is the latest step in an awkward courtship that has seen Danaos buy 16.7% of the Connecticut company for more than $68m.
Eagle Bulk has responded by introducing an anti-takeover measure known as a “poison pill” into its bylaws. It effectively grandfathers in Danaos’ existing stake but bars any further accumulation on pain of massive dilution, while preventing any other holder from taking a position exceeding 15%.
Cyprus-based shipowner Castor Maritime subsequently revealed a 14.99% stake.
Thursday’s filing rebutted comments by Eagle Bulk chairman Paul Leand that suggested Eagle Bulk’s purchase of Oaktree’s 28% stake came after Danaos chief executive John Coustas confirmed over lunch that his company had tried to buy the block.
The Eagle Bulk chairman said Coustas acknowledged that Danaos had made an offer for the Oaktree stake at or around net asset value. And he noted that Eagle Bulk bought Oaktree’s shares at a discount to NAV and below Danaos’ offer.
Danaos took issue with this in the filing.
“Danaos strongly refutes the board’s claim that Danaos made an actual offer to Oaktree at any specific price, and accordingly Danaos also refutes that it communicated to the issuer that it had done so at a price at or around the issuer’s net asset value (NAV) or otherwise,” the filing stated.
Reached on Thursday evening, Leand said he would not add to his previous comments and was focused on positive engagement with all the company’s shareholders.
For what it is worth, Danaos’ filing on Thursday came on form 13D, which is a document that can be used when an investor’s intention is to seek a corporate takeover. Its previous Eagle Bulk filing had come on form 13G, which is generally used by a passive investor.
Sources close to the matter said the change in filing status was not unexpected and was not in itself a source of concern.
Danaos said it may pursue “potential changes in the structure and efficiency of the issuer’s operations, which have significant room for improvement relative to its peer group”.
“Implementation of Danaos’ award-winning business intelligence enhanced maritime software — which has placed Danaos at the vanguard of digitisation in the shipping industry by integrating real-time vessel performance, technical, operational, chartering and accounting data — could alone meaningfully enhance the issuer’s operational efficiency and create significant value for all shareholders,” Danaos said.
