McDermott Project Woes Creates Cheap Target: Real M&A

McDermott International Inc. is so beaten down that buyers can snap up the offshore oilfield-construction company and its fleet at a near fire-sale price.

McDermott shares have slumped 47 percent in six months amid cost overruns at projects off of Malaysia and Saudi Arabia, leaving it trading at its liquidation value, according to data compiled by Bloomberg. Now, it’s vulnerable to being scooped up by rivals tempted by Houston-based McDermott’s still-strong industry brand and manufacturing operations near large crude producers such as Saudi Arabian Oil Co., said BB&T Corp.