McDermott International Inc. (NYSE:MDR): Current price $7.40
In response to the suggestion that the offshore oilfield-construction company McDermott is so vulnerable to a rival grabbing it at a bargain price, its shares have gone up by over 5 percent in late-morning trading Monday. Shares had fallen by 47 percent in six months, while cost overruns at projects off Malaysia and Saudi Arabia dominated the news, resulting in the stock trading near its liquidation value, said data compiled by Bloomberg. And now, McDermott could be snapped up by rivals enticed by its still-strong industry brand and manufacturing operations close to big crude producers like Saudi Arabian Oil Co., according to BB&T Corp.
Moreover, the $1.7-billion firm is said to be struggling while it builds out beyond lower-margin work in shallow water to riskier projects at deepwater sites. Capital One Financial Corp. said that after its decline, rivals Saipem SpA and Technip SA could pursue McDermott to obtain its fleet of offshore vessels for installing heavy pipelines.