Fly News Breaks for April 23, 2018
Apr 23, 2018 | 15:08 EDT
Citi said Subsea 7's hostile bid for McDermott (MDR) for $7 per share was an interesting and unexpected move, but the firm believes any proposal would have to be closer to $10 per share to disrupt the current terms of the deal with CB&I (CBI), which it notes is well down the road toward closing. Citi's "strong sense" is that McDermott, with the support of a majority of its board, is intent on staying the course in closing the deal with CB&I, adding that it thinks McDermott is buying CB&I at or near the bottom of a backlog cycle.
News For MDR;CBI From the Last 2 Days
Jun 18, 2019 | 15:15 EDT
Bearish flow noted in McDermott with 6,642 puts trading, or 1.2x expected. Most active are Nov-19 7 puts and Aug-19 6 puts, with total volume in those strikes near 6,500 contracts. The Put/Call Ratio is 9.50, while ATM IV is up nearly 3 points on the day. Earnings are expected on July 30th.