Denali Investors Issues White Paper on The Shaw Group's (SHAW) Merger with CBI

Denali Investors Issues White Paper on The Shaw Group's (SHAW) Merger with CBI

PR Newswire

NEW YORK, Oct. 17, 2012

NEW YORK, Oct. 17, 2012 /PRNewswire/ -- Denali Investors ("Denali") is issuing
a White Paper to SHAW's shareholders relating to SHAW's recent agreement to
sell itself to Chicago Bridge & Iron Company N.V. ("CBI").

A full copy of the White Paper can be found here:
SHAW - Demanding Fair Value & a Proper Sale Process - 2012 10 17.pdf
https://docs.google.com/open?id=0B-grqwjT-iWOdWZjNFVaLWVKLVU

In addition, please visit www.ShawFairValue.com for further information.

The following are highlights of Denali Investors' opinions as set forth in
more detail in its White Paper presentation:

  oThe current deal with CBI at $46 per share is a sweetheart transaction for
    CBI allowing them to steal SHAW on the cheap without a proper auction
    process or an appropriate control premium.
  oThe premature timing, depressed valuation, limited sale process, and total
    lack of communication of the deal is explained by our learning that a
    major conflict of interest exists with the Chairman's likely Louisiana
    senatorial (2014) or gubernatorial (2015) campaign.
  oManagement and Board:
    1) did not negotiate a go-shop period to solicit competitive offers,
    2) did not form a special committee for the sale,
    3) did not hold a customary conference call,
    4) did not release presentation materials about the transaction,
    5) did not file customary proxy materials, and
    6) has refused to communicate with investors, analysts, and journalists.
  oThere is ample evidence that the deal price is not the fair price that
    shareholders deserve given the:
    1) strength of SHAW's underlying business,
    2) massively impactful unwind of the substantial Westinghouse investment,
    and
    3) recent sale of the problematic and volatile E&C segment.
  oDue to SHAW's high 75% supermajority voting threshold that excludes 5% and
    greater holders, we estimate that ONLY 13% to 17% of shareholders voting
    against the unfair terms will block the current deal.
  oWe believe SHAW should be valued at $50 to $70 per share as a going
    concern and $60 to $85 per share including a control premium.
  oWe will continue to take all actions to protect our investment which
    include 1) proxy solicitors/advisors, 2) legal counsel, 3) appraisal
    rights counsel, and 4) independent inspector of elections.

We encourage fellow shareholders to also vote against the deal, share your
concerns with SHAW, and demand to have SHAW form an independent special
committee and hire independent advisors to run a proper auction to maximize
shareholder value.

SOURCE Denali Investors, LLC

Contact: Kevin Byun, +1-646-964-5355
 
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