Forget it

Frontline has shot down internet chatter it is readying a takeover of Nordic American Tanker Shipping.

Frontline CEO Jens Martin Jensen (right) with CFO Inger Klemp.

CEO Jens Martin Jensen tells TradeWinds the Oslo and New York-listed giant is not interested in the suezmax spot specialist.

As we reported on Friday a rumour has been snowballing in the US that John Fredriksen-controlled Frontline is ready to splash out $1.67bn for control of tonnage hungry NATS.

Jensen was in no mood to entertain such talk this morning.

Speaking from Singapore, he said: “It’s not correct. It’s nonsense.”

He was not willing to enter further discussions on the matter.

Shipping analysts have been equally emphatic in burying rumous of the takeover.

Responding with chuckles and derision, one said: "It's a joke.”

The touted bid price of $40 per share was 42% higher than Nordic American Tanker's Friday afternoon trading price.

It would be an even bigger premium on the company's net asset value, which investment bank Dahlman Rose reported at $16.74 per share.

Buying NATS for $1.67bn would mean paying $93m each for 18 suezmax tankers and newbuildings the company owns or has committed to buy.

Herbjorn Hanssen’s NATS paid only $51.5m each for its latest two suezmax acquisitions.

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