OMI Watch

Normally we try not to deal in rumor or innuendo, preferring to leave that ground for other well-known publications. But the rumors of John Fredriksen’s Frontline AB making a hostile play for OMI have reached a fever pitch. Now, back in November 1996 we published a piece on OMI relating that the existing shareholder structure of the company compared favorably to Frontline’s own shareholder structure just prior to Mr. Fredriksen’s takeover. These rumors persisted through the completion of OMI’s offering in late November. The company has nearly succeeded in divesting its US flag vessels and operations, going so far as to indicate that the company’s domicile might be relocated outside of the United States. Such action would remove the company’s natural takeover defense: the Jones Act requirements that 75% of voting rights of any company involved in US cabotage be controlled by US interests.

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