Bloomberg News

Torm Shares Drop on Report Nordea Tried to Sell Tanker Company

January 16, 2012

Jan. 13 (Bloomberg) -- Torm A/S, which has agreed with banks on a temporary deferral of its debt repayments, fell the most in seven weeks in Copenhagen trading after a newspaper said Nordea Bank AB had tried to find a buyer for the tanker company.

Torm’s stock fell as much as 11 percent, the most since Nov. 23, after Oslo-based Finansavisen reported the bank had tried to broker a deal for shipping billionaire John Fredriksen to fold Torm into his Frontline 2012 Ltd. company.

Torm, which lost 90 percent of its market value last year, said in November it may have to sell as much as $300 million of new stock to boost capital as tanker rates have plunged. RS Platou AS was also part of a potential deal to sell Hellerup- based Torm, the newspaper reported, without saying how it obtained the information.

“We can’t comment on what our clients do or not do,” Peter Anker, chief executive officer of RS Platou, said by phone today. “I expect to see a lot of consolidation and restructuring in shipping in general, especially in the tanker market, where the outlook is challenging.”

Torm declined 0.38 krone, or 8.3 percent, to 4.2 kroner at 10:37 a.m. in the Danish capital.

Tor Olav Troiem, an aide to Fredriksen, was unavailable for comment when contacted by Bloomberg News.

--With assistance from Alaric Nightingale in London. Editors: Tasneem Brogger, Meera Bhatia.

To contact the reporter on this story: Christian Wienberg at cwienberg@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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