Shares of Teekay Offshore Partners (NYSE: TOO) jumped more than 30% on Tuesday morning after the shipping company agreed to be acquired by Brookfield Business Partners (NYSE: BBU) for more than $600 million in cash. Brookfield got the deal done by sweetening an initial offer that had come under criticism from some Teekay shareholders.
Brookfield will pay $1.55 per unit in cash for Teekay, a substantial premium to the $1.05 per unit it initially offered in May, and 33% above Teekay's $1.16 closing price on Monday.
The earlier bid was criticized by stakeholders including JDP Capital Management managing partner Jeremy Deal, who in a June press release said that, "even a conservative valuation of Teekay Offshore would put the value well above $4 per share based on contracted cash flows with oil majors, a strong balance sheet, and a sector in the early stages of a major rebound."