OSG boosts tender offer for OSG America

Overseas Shipholding Group boosts tender offer to $10.25 per unit for OSG America

• On 3:26 pm EDT, Thursday September 24, 2009

NEW YORK (AP) -- Tanker company Overseas Shipholding Group Inc. said Thursday that it increased the tender offer price for common units of OSG America L.P., by 28 percent to $10.25 per unit.

The company initially had offered investors $8 per unit. The increased offer price represents about a 44 percent premium over the closing price of the units on July 29, the last full trading day prior to the original offer. The tender offer is expected to begin in October.

OSG and its affiliates own roughly 53.3 percent of the OSG America common units. It said their equity stake, including subordinate units and a general partner interest, is roughly 77.1 percent. OSG America transports refined petroleum products.

OSG said in a statement that its decision to increase the offer price follows extensive discussions between OSG and a committee of independent directors of OSG America appointed to review the offer. OSG said the committee has informed the company that the revised price "is fair" to common unitholders.

Shares of Overseas Shipholding fell $1.05, to $38.68 in afternoon trading.