US engineering firm McDermott International has urged its shareholders to vote in favour of its takover of CB&I.
It comes after Hotchkis & Wiley, which owns nearly 2% of McDermott, wrote a letter saying it would not support the combination.
Hotchkis & Wiley said: “McDermott’s deal for CB&I was tolerable with the facts available at the time, but the situation has worsened materially since the deal was made. CB&I announced troubling results that increase our worry that the business will take longer to fix.”
But McDermott said it believed the merger was “in the best interest” of the company and its stockholders.
A spokesman said: “The combination creates a company that spans the entire value chain from concept to commissioning, and is expected to deliver compelling value, make the combined business more competitive and enable a more consistent, predictable performance through market cycles.
“The proven McDermott management model delivers sustainable, profitable growth. By applying this operational excellence across the combined portfolio, we will be a best-in-class integrated solutions provider driven by consistency in systems, processes, execution and culture. This model will benefit stockholders by unlocking value in the near and long term.
“The companies have received all necessary regulatory approvals and are in a position to complete the requisite financing. The combination is expected to close in the second quarter of 2018.”
McDermott’s special meeting of stockholders is scheduled to be held on May 2.