Decision nearing on Shaw deal

CB&I shareholders are expected to vote today in The Netherlands on whether to allow the company to purchase The Shaw Group. Results were not available as of press time. One analyst says the results might be available before the U.S. markets close today, while a Shaw spokeswoman says CB&I will likely release the information early tomorrow before the markets open. In any event, CB&I only needs the holders of a simple majority of voted shares to approve the deal, valued at $3.04 billion in cash and stock. The vote of Shaw shareholders, to be held Friday, has a much higher threshold: 75% of shares, excluding those who own more than 5%, and a majority of people present at the meeting. The biggest concern for Shaw, says Randy Bhatia, an analyst with Capital One Southcoast, is that not enough people will vote at all. “I really don’t see much risk of a material number of people voting against it, just given the pricing,” Bhatia says. “Until those votes are in, and done, I don’t think the people at Shaw will quite rest easy.” Some large investors are selling shares, to get below 5% threshold so their votes will count. “A 4.99% holder can sway the vote pretty significantly,” Bhatia says. Shareholders who object to the price, $46 per share in cash and stock, have the opportunity to litigate over what they feel is the true value. But one expert observer, who asked not to be identified, says it’s unlikely that many shareholders will decide the cost and hassle of litigation are worthwhile. —David Jacobs