S&P: OMI unchanged

Standard & Poor's said its ratings and outlook on OMI Corp. (BB/stable/--) are not affected by the company's announcement that it has entered into discussions to combine OMI with Athens, Greece-based Stelmar Shipping Ltd.

OMI's proposal would give the current Stelmar shareholders 40.5% of the combined company, based on an all-stock transaction. However, Stelmar's shareholders are expected to have the option to receive up to 25% of the offer price in cash. No definitive agreement has been reached on the potential transaction, and terms could change.

S&P said it will assess the potential benefits and risks, as well as the financing, of the proposed transaction as it progresses and more details are made available. Ratings could be placed on CreditWatch if a definitive agreement is announced or appears likely and if it appears that ratings of OMI could be affected.

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