TK - Euronav surges on proposed deal with Frontline tanker stocks also rise

Euronav (NYSE:EURN) jumped as much as 11% while Frontline (NYSE:FRO) fell as much as 6% Thursday after the shipping firms announced a proposed $4.2B merger that would create the world's largest oil tanker fleet. Other tanker stocks also are moving higher, including Nordic American Tankers (NAT) +6% and Teekay Tankers (TK) +3%; Dorian LPG (LPG), Genco Shipping (GNK) and DHT Holdings (DHT) are up less than 1%, paring strong earlier gains. Reuters reporter Ed Cropley sees the potential for more defensive alliances in the tanker segment given oil demand likely will fall later in the decade as the switch from fossil fuels gathers steam. Despite its billing as an all-share merger, Euronav shareholders were offered a 10% premium based on Wednesday's closing prices and will own 59% of the new entity, slightly more than their share of the two companies' undisturbed market value. With a combined fleet of 69 very large crude carriers

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Euronav surges on proposed deal with Frontline, tanker stocks also rise