Saltchuk Bids on Overseas Shipholding Group

Saltchuk, owner of 22% of Overseas Shipholding Group's shares, made an unsolicited bid on January 29 to acquire the remaining 78% of OSG shares at $6.25 per share. In the months since, neither company has made official announcements, and OSG's stock has traded close to the $6.25 offer price, implying the market holds a high degree of confidence in the deal closing.

Interestingly, the stock has also traded above the $6.25 mark since the offer was made. This means that if a deal does close at $6.25 per share, anyone who bought shares above that level would lose money.

Saltchuk could increase its offer in a handful of scenarios—the most intriguing one being a bidding war with another company that ultimately drives up the price to acquire OSG.

It's worth noting that this is Saltchuk's second attempt at buying OSG, having first tried in 2021 (at $3.00 per share) but ultimately suspending the effort. OSG's stock did not trade as close to (or in excess of) Saltchuk's offer price then, so it would seem that we're heading towards a different outcome this time.