McDermott International (NYSE:MDR) news for Friday about the oil company considering a sale of its tech unit has MDR stock soaring.
The McDermott International news starts off with the company noting that it has received a unsolicited offers from a entities seeking to acquire all, or part of, Lummus Technology. The offers for the tech unit have a value above $2.50 billion.
McDermott International says that it is considering the offers for Lummus Technology. It has brought in Evercore to serve as its lead advisor in connection to the opportunities present from a deal.
“The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott’s capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet,” David Dickson, President and CEO of McDermott International, said in a statement. “While Lummus is an important business within McDermott, we have decided to undertake a process to fully realize its strategic and financial value.”
McDermott International doesn’t provide further details about the offers for Lummus Technology. That includes not mentioning names for any of the organizations seeking to acquire the tech unit, or if it will even move forward with the sale. Either way, the McDermott International news is helping out MDR stock today.
MDR stock was up 15% as of Friday afternoon, but is down 78% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.