CH Offshore

CH Offshore: Last Friday, Falcon Energy (FEG) made a voluntary conditional cash offer to acquire the remaining 70.93% stake in CH Offshore (CHO) for $247.5m, or $0.495 per share. We note that CHO is trading at $0.515/share currently, above the offer price, which could possibly indicate that some shareholders do not view the offer price as being attractive enough. As a gauge, CH Offshore has a 7-year average P/B of 1.25x, translating it into $0.577/share.