What the $3 billion buyout of The Shaw Group ultimately means for its 27,000 employees around the world and its Baton Rouge headquarters is unknown at this point. Shaw has about 1,000 people working out of its BR office.
The Fortune 500 company announced Monday that it is being acquired by CB&I, formerly Chicago Bridge & Iron Co., in cash and stock deal.
Shaw, whose fiscal year 2011 annual revenues were $5.9 billion, serves the energy, chemicals, environmental, infrastructure and emergency response industries. With U.S. headquarters in The Woodlands, Texas, CB&I engineers and constructs some of the world’s largest energy infrastructure projects. The transaction will more than double CB&I's annual revenues.
CB&I (NYSE: CBI) will acquire Shaw (NYSE: SHAW) for $46 per share in cash and stock, a premium of more than 70 percent. Shaw’s shareholders will receive $41 in cash and $5 in CB&I equity for each share of Shaw stock at closing.
Shaw’s stock closed at $26.69 Friday and was up more than 52 percent by noon Monday; CB&I’s stock was down almost 15 percent to $34.71. The Street noted that the acquisition also comes with risk because Shaw Group lost $175 million last year, while CB&I reported a $255 million profit.
Baton Rouge’s Daily Report quoted LSU economist Jim Richardson saying that the Capital City is likely on the losing end of this deal. Because CB&I’s U.S. operations are based in Houston and “they obviously have a large staff and headquarters there already,” it’s likely a substantial part of Shaw’s corporate operations will move out of state, Richardson said.
“Does this kill your economy? No, not by itself,” he told Daily Report. “But as a growing city you like to have big companies coming here, not leaving.”
Jim Bernhard Jr., chairman, president and chief executive officer of Shaw, will leave the company when the transaction is finalized early next year.
Read more on the mega deal in Tuesday’s Advocate here and Shaw’s Monday announcement here.
A supporter of a lawsuit against the oil industry has been re-nominated to a seat on a south Louisiana flood control board despite opposition from Gov. Bobby Jindal.
The nominating committee for the Southeast Louisiana Flood Protection Authority-East was set Thursday to nominate applicants for two people on the board whose terms have expired.
Restaurant could see ‘a little facelift,’ Bobby Butcher tells Daily Report.
Attorney General Buddy Caldwell says he won't approve a Cameron Parish Police Jury resolution to hire outside attorneys for such a lawsuit until the resolution is amended. Caldwell's Sept. 15 letter says the resolution must make clear that those attorneys will represent the parish alone — not the state.
Michelle D. Lavergne, who worked for the Lafayette law office of L. Clayton Burgess for 13 years, faces up to 10 years in prison.
Sonnier, former media buyer and account exec at Sides, joins Acadian companies as marketing specialist; Maggard, who most recently worked for Potenza, joins Russo as director of media and PR.
New recreation/fitness trend taking over old Crazy Charlie’s on Ambassador Caffery Parkway.
Authorities said that a Chevron Corp. subsidiary was still releasing natural gas Sunday from a pipeline off the Louisiana coast where a Saturday incident killed a maintenance worker.
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Lafayette’s most highly regarded attorneys were honored by their own at the Hall of Fame Banquet sponsored by the Lafayette Bar Association.
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There has been much progress in the 50 years since the Civil Rights Act was passed, but there is still work to be done.
Amid widespread criticism, two former U.S. senators say they are not lobbying Congress on behalf of a shady Russian bank, although a federal disclosure suggests otherwise.
Banks are the ones taking the financial hit for retail security breaches, and that just doesn’t seem fair.
It’s time to embrace a new regional model for economic development.
The state labor department figures released Friday show the initial claims decreased to 1,961 from the previous week's total of 2,237. For the comparable week a year earlier, there were 2,190 claims.
Hurry, rush to Jersey’s Daiquiris Sports Bar in Broussard for a cold one because at noon tomorrow its license is suspended for two months by the state!
The feds say Donald Domingues reported $259,725 as income and paid $64,909 in taxes but he allegedly failed to mention a $351,000 sales commission, which would have bumped his income up to just over $610,000 and his tax liability to $186,000.
Year-to-date sales are outpacing 2013 by 4.7 percent.
“The connector is a crucial part of the larger I-49 South project from Lafayette to New Orleans that would convert U.S. 90 into an interstate-quality roadway.” — U.S. Sen. Mary Landrieu
Despite what was said at a coastal forum in New Orleans last month, oil and gas insiders contend a settlement is not in the stars for the massive lawsuit filed against nearly 100 energy companies by the Southeast Louisiana Flood Protection Authority-East.