Bermuda Triangle

by Bridget Hogan

Just as mariners have been taken by surprise by the treacherous waters in the Caribbean when seeking balmy weather, so Smedvig Tankships fell victim of the very commercial climate it sought as a haven.

While the disappearance of Smedvig Tankships was finally down to the failure of the tanker market and the allure to shareholders of the price on offer from Bona Shipholding, other forces were at work too. Ironically, the Bermudan law regime, which seemed so attractive to Smedvig Tankships when setting up, provided the right climate for the take-over maneuvers.

The Smedvig Tankships that disappeared last month was formed in 1993, although Smedvig as a name has been in shipping since 1935. The company successfully set up in Bermuda in 1993 and, in June of the year, an international initial public share offering of shares raised $138 million to buy six Aframax crude oil vessels to augment the existing fleet of five ships.

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