McDermott International, Inc. MDR shares are trading sharply higher after the company announced it will explore strategic alternatives for Lummus Technology.
McDermott recently received unsolicited offers to acquire Lummus with a valuation of over $2.5 billion.
McDermott's Lummus Technology is a licensor of proprietary petrochemicals, refining, gasification and gas processing technologies.
"The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott's capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet,” said David Dickson, CEO of McDermott. “While Lummus is an important business within McDermott, we have decided to undertake a process to fully realize its strategic and financial value."
In other news, McDermott's processes to sell the remaining portion of its pipe fabrication business and its industrial storage tank business are ongoing. McDermott says it has has also retained Evercore as the lead advisor on the strategic alternatives process for Lummus Technology.
McDermott shares traded lower Thursday on continued momentum after the company announced it has hired advisors to 'evaluate opportunities' for the company in order to improve capital structure and the balance sheet.
McDermott shares were trading up 44% at $2.28 in Friday’s pre-market session. The stock has a 52-week range between $19.44 and $1.44.
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