Wednesday, September 2, 2009

Maersk in Massive Share Sell-Off

Sale will fund aggressive acquisition policy
Shipping News Feature

COPENHAGEN - A.P. Moller-Maersk, the Danish Shipping and oil group, has reported that it plans to sell up to 250,340 of its own shares, about 5.7 percent of the total share capital, to boost its financial resources. The sale is expected to raise about $1.8 billion.

Though this year has been extremely tough for Maersk, which has recently made a number of cuts to its ship building division and recorded its first loss in 105 years, the sale is in line with its stated intention to expand to take advantage of the failure of a number of its smaller rivals.

The strategy, though not without risk, shows all too clearly how the management structure at the company has made Maersk the largest shipping group in the world through the making of bold decisions and the ability to exploit crisis.