Camillo Eitzen & Co ASA (CECO) has signed a letter of intent for the acquisition of the chemical tanker company Fouquet Sacop S.A.

The Fouquet Sacop fleet is comprised of 12 chemical tankers ranging in size from 3,900 to 19,000 dwt with an average age of 2.5 years. In addition, the company has 2 vessels on bareboat and 3 newbuildings on order for delivery January, June and July 2007.

The total aggregate purchase amount is EUR 219 million. The acquisition will be financed through debt and equity.

The transaction is subject to satisfactory financial and legal due diligence. The transaction is expected to create synergies with the existing CECO chemical operations, and especially with Navale Francaise S.A.S.

Despite the falling chartering market, we saw sustained activity, especially for young units where prices remain firm, as ever. The following comparative deals are good examples of current market levels:

Bakri Navigation acquired the ‘Fosna’ (95,650dwt – built 1992) for $38m. Mid-February, we reported the sale of the ‘Taipan’ (96,759dwt – built 1992) for $40.5m. 

There are rumours that Omega acquired en bloc the ‘Aristidis’ (37,000dwt – built 2006) and ‘Adonis’ (37,000dwt – built 2006) for $50m each, but this deal has not yet been substantiated. We reported 2 weeks ago that Omega committed the ‘Southern Unity’ (37,000dwt – built 2004) for $47m, which finally failed to materialize.

Norwegian buyers acquired the ‘Monte Carmelo’ (11,380dwt – built 1994) for $14m.

Stolt-Nielsen acquired the ‘Sun Diamond’ (8,697dwt – built 1998) for $17.75m.

We observed another week of sustained activity focusing from the Capesize down to the Handysize segments. Prices remain firm. The following comparative deals are good examples of current market levels:

Alcyon acquired the ‘Formosabulk Glory’ (170,000dwt – built 2005) for $65m. Only 2 weeks ago, we reported the sale of the ‘Formosabulk Fortune’ (170,000dwt – built 2006) for $64m.

The aggressive TMT acquired en bloc the ‘Hebei Puma’ (175,075dwt – built 1992) and the ‘Hebei Angel’ (165,133dwt – built 1993) for a whopping $70m.

The owner also acquired the ‘Sun Bulker’ (52,500dwt – built 2002) for $30.5m. Remember last week’s sale of the ‘F.D. Laura D’Amato’ (52,512dwt – built 2002) for $28.5m!

Moreover, it acquired en bloc the ‘Yasa Aysan’ (52,434dwt – built 2000) and the ‘Yasa Emirhan’ (52,402dwt – built 2001) for $28m each, showing the market’s stability compared to the past months.

Safety Management Overseas committed the ‘Sophia’ (76,421dwt – built 2002) to Sea Justice for $34.5m.

Greek buyers acquired the ‘Castillo De Butron’ (74,400dwt – built 1988) for $13.75m.

The sale and purchase activity was up for yet another week. It is interesting to note that the activity is concentrated mainly on smaller sizes and divided between vessels built after the 20^th year of their life or close to the 10^th. A possible meaning of this trend is that the non-IPO owners are returning to the buying arena trying to take advantage of the somewhat corrected prices while showing strong faith in the Handysize market. As many players await a further decline during holiday period, some cash strong bidders cannot wait to fix their new acquisitions under this firmer market.

The modern Handymax ‘Bright Future’ (DWT 45,578 – BLT 2000) was once again rumored sold after its recent ‘sale’ at US$ 30 million which failed; this time reported sold at US$ 28 million to undisclosed buyers. 

Kristen Marine has acquired two modern handy bulkers for a total US$ 43.5 million; the vessels under question are the ‘Star Chaser’ and the ‘Star Elfin’ (DWT 28,400 – BLT 1997). The ‘Clipper Eagle’ (DWT 16,906 – BLT 1994) and ‘Clipper Falcon’ (DWT 16,900 – BLT 1995) were also committed to Th. Jacobsen & Co for US$ 19.25 million enbloc including a bareboat back to sellers at US$ 6,500/day each.

Continuous increases in the physical market have fuelled enquiry once more as Centrofin Managament emerged as the buyer of the modern Aframax ‘Seabridge’ (DWT 105,154 – BLT 1996), paying a whopping US$ 48.5 million with delivery as late as June 2006.

In the Handy segment the Cielo “saga” was finalized this week as the ‘Cielo di Bothnia’ (DWT 27,350 – BLT 1986) was rumored sold to Norwegian buyers fetching US$ 19 million. The vegoil trade after 2007 seemed lucrative enough for the Norwegians to pass on…

Double-sided chem tankers ‘Marine Champion’ and ‘Marine Pioneer’ (both DWT 10,400 – BLT 1998) were committed to Chinese buyers for US$ 12.250 million each. Both vessels will be converted into double hull after delivery.

The second hand market has lost its momentum due to the absence of confidence from the uncertainty prevailing in the physical market. This in one hand has stirred activity levels as reduced prices give buyers a standpoint to enter while certainty of even lower levels during holiday season seem to deter them for time being since the charter market is also considerably down during that period. Frankly speaking, the incentive of buying and fixing on long-term period may be greater now than at later stage… Ongoing rumours on the two Romanian built gearless panamaxes ‘Hebei Progress’ (DWT 64,884 – BLT 1982) and ‘Hebei 1’ (DWT 64,854 – BLT 1982) being to Greek buyers for US$ 6 million have prevailed early this week although same have been denied by Sellers.

Modern Handymax ‘Blue Dream’ (DWT 45,916 – BLT 1997) went to Greek buyers for US$ 25.5 million while ‘Antoine’ (DWT 42,469 – BLT 1990 was sold for US$ 20 million to undisclosed buyers. ‘Alexandros Th’ (DWT 35,501 – BLT 1984) was also committed to Greek buyers for US$ 8.25 million.

‘Golden Sun’ (DWT 26,814 – BLT 1980) fetched US$ 4.6 million. ‘Crystal Ace’ (DWT 27,008 – BLT 1979) was also sold for US$ 4.6 million to undisclosed buyers. Finally, ‘Evanthia’ (DWT 25,708 – BLT 1977) was committed to Syrian buyers fetching US$ 3.5 million.

The sale and purchase activity was quiet this week with the majority of the sales involving older units.

Aframax ‘Gerrita’ (DWT 112,046 – BLT 1990) was sold to AED for US$ 35 million for conversion purposes. This high price reflectes the fact that the vessel has already installed a DP and a loading system so it will make the FPSO conversion easier.

Furthermore, double-sided ‘Koriana’ (DWT 63,786 – BLT 1985) was sold to Hellenic Star Shipping for US$ 14 million.

In the smaller segment, ‘Marbella’ (DWT 6,155 – BLT 1985) was committed to Unicorn for US$ 10.3 million. Last but definitely not least, double hulled ‘Arabian Horse’ (DWT 4,429 – BLT 2000) was reported sold for US$ 2 million.

The uncertainty in the physical market was also reflected in the s&p front with buyers being extremely reluctant to give in to the corrected but always firm asking prices. It was a ‘dry’ week in general with only a few transactions reported, which concerned older units.

The modern transaction of the week is the sale of the geared Handymax ‘Tolhuaca’ (DWT 42,226 – BLT 1991) for US$ 18.5 to Chinese, as the other three sales reported are from the mid 80s and below.

Furthermore, ‘Dong Bang’ (DWT 17,825 – BLT 1985) was sold to undisclosed buyers for US$ 6 million.

The older single-decker ‘Union Glory’ (DWT 7,305 – BLT 1977) was sold for US$ 1.050 million to Middle Eastern buyers. Finally, in a rather boring week in terms of sale and purchase, ‘Alkman’ (DWT 3,108 – BLT 1978) was committed to Spanish buyers for US$ 1.650 million. 

Activity in the sale and purchase market is increasing considerably both in terms of enquiry and reported sales.

The week was basically dominated by smaller size sales with the only exception being the double sided Panamax ‘Athos I’  (DWT 60,880 – BLT 1983) that went to Golden Crown Shipping for US$ 7.2 million. 

Furthermore, Romanian built modern MR ‘Chinook’ (DWT 38,695 – BLT 2001) was reported sold to undisclosed buyers for US$ 32.6 million. Sister vessels ‘Cielo Del Baltico’ and ‘Cielo Di Biscaglia’  (DWT 27,350 – BLT 1986) were reported bought by Norwegian owners for US$ 17.9 million each. Also, ‘Frea’ (DWT 16,484 – BLT 2003) and ‘Nina’ (DWT 16,484 – BLT 2005) were sold to Bryggen Shipping for a total of US$ 70 million.

In the smaller but quite active tanker market segment, double-bottomed ‘Galp Aveiro’ (DWT 6,260 – BLT 1983) was sold for US$ 2.65 million with the identity and nationality of the buyers remaining undisclosed.

Second hand prices are showing weakening signs, which are a direct effect of the continuous instability in the physical market.

Capesize ‘Orient Alliance’ (DWT 142,065 – BLT 1990) was sold to Chinese buyers for US$ 30.5 million along with a 13-month t/c at US$ 30,000/day.

Furthermore, ‘Nemea’ (DWT 68,870 – BLT 1989) went to Chinese buyers fetching US$ 19 million and ‘Victory C’  (DWT 65,716 – BLT 1986) was sold for US$ 15 million to undisclosed buyers. Last but not least, older Panamax ‘Standard Vigor’  (DWT 64,120 – BLT 1981) went for US$ 6.9 million to Russian buyers lowering the benchmark on this size/age of Panamaxes. During November 2004 a similar vessel ‘Great Gasby’ ex Orestis Ermis (DWT 64,942 – BLT 1981) managed to get a whopping US$ 12.25 million, unfortunately it seems that these days are well in the past.

Last but definitely not least, the sale of Handymax ‘Amulet’ (DWT 45,700 – BLT 1995) to Danish investors seems that finally materialized, fetching US$ 23.5. The transaction includes a 2-year t/c at US$ 14,000/day.

The wet s&p front remains strong as according to the reported sales, buyers are eager to pay the hefty levels asked by sellers.

Genmar was once again in the centre of attention through the disposal of six double-sided aframaxes to Frontline for a total of US$ 133 million.

Varminma Corporation owned older Suezmax ‘Navarino’ (DWT 149,235 – BLT 1982) was sold to Star Marine for conversion purposes fetching US$ 22 million.

After the acquisition of the Aframax ‘Pacific Wave’, Centrofin management has also emerged as the buyers of ‘Koyagi Spirit’ (DWT 95,987 – BLT 1989 for USD$ 21 million. Same company has also disposed older Aframax ‘Nilos’ (DWT 87,000 – BLT 1981) for US$ 10 million to Awilco Heavy Transport.

The holiday period, that seems to be the main reason for most of the market players that the freight rates are moving downwards for yet another week, has also suppressed the sale and purchase front.

In the sale and purchase front, Panamax ‘CMB Florentina’ (DWT 76,838 – BLT 2005) was rumored sold to Greek buyers for US$ 41 million.  Also, ‘Sydney King’ (DWT 69,421 – BLT 1988) was committed to Chinese buyers for US$ 18 million.

This week’s sale and purchase was slightly better than the last in terms of sales reported.

In a more corporate point of view, it is worth noting an internal OSG - DHT transaction that was initiated in mid October and it is valued approximately US$ 580.6 million, net of fees and expenses. The vessels sold to Double Hull Tankers include three VLCC and four Aframax tankers -- all core ships in the OSG fleet -- representing 928,600 and 413,800 deadweight tons, respectively (see additional information below). OSG will time charter these modern vessels from DHT for terms through October 2010 and April 2012, with extension options that run up to 14 and one-half years

Further to the sale traffic, Dynacom has committed a single hull VLCC from NYK for US$ 30 million. The vessel under question is the ‘Takamatsu Maru’ (DWT 264,631 – BLT 1987).

Another active week was recorded in the sale and purchase front with a healthy amount of sales reported.

Two Capesize resales from Bohai were reported early in the week, but the sale failed to materialize. The two Transmed owned vessels were initial rumoured sold for about US$ 70 million each, but are circulated now for sale in the high US$ 60s each.

Amex listed Diana Shipping has acquired two modern Panamaxes this week for a total of US$ 82 million. The vessels under question are the ‘CMB Felix’ (DWT 74,500 – BLT 2006) and the ‘CMB Philippe’ (DWT 74,500 – BLT 2004), both built in Hudong shipyard in China. 

The week was poor in terms of reported transactions as only one sale was recorded. Enquiry remains firm and sentiment is still positive with no signs of the demand for prompt tonnage weakening in the short term.

It was an active week for the second hand market in the dry sector. Buyers eager to get their hands on any tonnage that its price tag has undergone a correction in line with the physical market developments.

Further to the sale and purchase action, geared panamax ‘Grace T’ (DWT 68,762 – BLT 1989) was committed to Greek buyers for US$ 19 million.

As the physical market remained solid for yet another week, buying interest has started to spark in a more cautious perspective of course. 

Capesize ‘Orient Alliance’ (DWT 152,065 – BLT 1990) was rumoured sold for US$ 30.5 million with 13 months t/c back. The name or nationality of the buyers was not disclosed.

In the panamax sector, ‘Chinese Phoenix’ (DWT 69,337 – BLT 1991) was committed to undisclosed buyers for US$ 21 million. Furthermore, in the same size segment, ‘Everblessing’ (DWT 66,734 – BLT 1984) was sold for US$ 12 million with buying party remaining anonymous.

Double hull Panamax ‘Difko Susanne’ (DWT 84,040 – BLT 1989) was committed to Greek buyers for US$ 32.5 million. Moreover, Modern MR ‘Baltic Argonaut’ (DWT 37,340 – BLT 2005) was rumoured sold to Augusta Due for US$ 45.6 million. Buyers have fixed the Vessel to Shell for 3 years at USD 20,000/day

After a stable week in terms of freight rates, the sale and purchase market has followed in the same manner. The prices achieved a in this week’s reported sales illustrate that buyers are constantly reducing their levels.

In the larger size, Panamax ‘Ji Me Hua’ (DWT 69,149 – BLT 1994) was committed to undisclosed buyers for US$ 26 million.

Turkish owned modern Handymaxes ‘Halim Bey’ (DWT 53,000 – BLT 2005), ‘Beyazit Bey’ (DWT 53,000 – BLT 2005), ‘Nedim Bey’ (DWT  52,817 – BLT 2001) and ‘Zeki Bey’ (DWT 50,992 – BLT 2002) were sold to Tsangaris for a total of US$ 135 million.

Korean interests are reported to be behind the US$ 33.5 million sale of the ‘Kwk Legacy’ (DWT 149,505 – BLT 2001). Also, Capesize ‘New Halcyon’ (DWT 149,477 – BLT 1993) was rumoured sold to undisclosed buyers for US$ 33 million.

Furthermore, Eagle Maritime has acquired two modern Handymax bulkers, ‘Nordbright’ (DWT 52,827 – BLT 2001) and ‘Nordsund’ (DWT 50,296 – BLT 2001), for US$ 32 million each. The transaction includes at t/c back to sellers for US$ 24,000/day for each of the vessel. Finally, Greek buyers are behind the acquisition of modern Handymax ‘Apollon’ (DWT 52,105 – BLT 2002) for US$ 33.15 million, the vessel was reported sold back in February for US$ 38 million but the sale apparently failed. 

NS Lemos owned VLCC ‘Irene SI’ (DWT 319,000 – BLT 2004) was sold to Fred Cheng for a whopping US$ 125 million indicating that the market is still hot for this kind of tonnage. Fred Cheng has also emerged to be the buyer of the CM Lemos owner VLCC ‘Universal Ariake 029’ (DWT 298,000 – BLT 2004) paying a very firm US$ 140 million, which has created a new benchmark in the sector.

Suezmax ‘Sabine’ (DWT 157,331 – BLT 1998) controlled by OMI was committed to Nordic American Tankers for US$ 71 million.

In the Panamax sector, ‘Stena Compass’ (DWT 72,000 – BLT 2005) and ‘Stena Compassion’ (DWT 72,000 – BLT 2006) were sold for US$ 56 million each including a bareboat for each of the vessel at US$ 18,500/day.

Double Hull Tankers has finally filled yesterday with US regulators for an initial public offering of up to $368m including over-allotment.

DHT aims to gross $300m at the mid-point of a $14-$16 price band on 20m shares offered to the public.

A further 3m shares are available for over-allotment by managers led by UBS Investment Bank and Merrill Lynch.

Tsakos Energy Navigation (TEN) has confirmed the sale of its 86,800-dwt aframax tanker Tamyra (built 1983) for US$ 10 million to undisclosed buyers.

The S&P activity was increased following the firming up of the rates, allowing for an interest in acquiring tonnage. This week saw the sale of ‘Minerva Island’ (DWT 72,072 – BLT 1996) being reported sold to Eagle Maritime for US$ 29 million.

Furthermore, the ‘Min Noble’ (DWT 65,785 – BLT 1981) was reportedly sold to undisclosed buyers for US$ 6.62 million. This sale shows a decline of around 50 percent off the peak market prices of March and April of this year.

Lastly, as this report was going to print, a rumoured sale emerged that of ‘Maritime Antalya’ (DWT 52,454 – BLT 2002) for US$ 29.5 mio to undisclosed interests!!! A rather discouraging figure if one should consider the fact the Sellers were originally asking for mid US$ 30 million only 3 weeks ago.

Titan Petrochemicals has denyed that it has concluded the purchase of a Dynacom VLCC or that it is looking at one part-owned by Frontline. Director Nora Young has stated that market reports that the company acquired the 260,000-dwt Falcon (built 1994) and is buying or considering to buy the 260,600-dwt Front Tobago (built 1993) are entirely untrue and unfounded.

However, the sudden death of the group's founder, Stamatis Restis slowed down plans. At the beginning of the year, Restis' son Victor, who has taken over the management of the group, reconfirmed an IPO was
seriously being considered, though then it seemed it would be either a wet or a dry fleet would be sold, not a combination as is now the case. Though a number of Greek owners are now pulling back from venturing into the capital market, the Restis group, one of Greece's
largest shipping groups with a 70-strong fleet of 4.7m dwt, is well prepared and is offering a solid fleet of 12 product carrier newbuildings from the group's Golden Energy Management Corpoperation and nine 1990's panamax bulkers from the 32 ships acquired from
Malaysia International Shipping Corp (MISC) in December for $740m. Ceo of Golden Energy Marine is Dale Ploughman, formerly with US-listed banana group Chiquita, but who has been working for Restis for some
time now. Kostas Koutsoubelis, the group's cfo, is chairman and the cfo is Alex Papageorgiou who has worked for JP Morgan.

The IPO has been underwritten by Jeffries & Co, Fortis Bank, HSBC, Morgan Stanley, First Business Bank and P&K Securities.

Genco Shipping & Trading is looking to price its initial public offering at between $24 and $27 per share for a total take of around $293m, according to new documents filed with US securities regulators.

Genco projects a net take of around $249m for the company if the flotation prices at the $25.50 mid-point of its target range. This does not include any shares sold by the insiders, nor does it include any exercise of overallotments held by the underwriters -- a toal of 1.725 million shares.

According to various sources, Barlay Shipping refused to accept discount pricing demanded by investors in the wake of three consecutive shipping IPOs that have priced below their target. So they decided to freeze the US$ 250 IPO for now...

Aries Maritime Transport has cut the size of its initial public offering from 15 million shares to 10 million in hopes it can price the IPO, which did not actually get the demand they were hoping for.

Lead underwriter Jefferies is hoping the cutback will allow a pricing of the issue on Thursday, and that the company will be able to return to the market later for a follow-on offering, finance sources said.

The cutback comes after a 20 May report that Aries was until recently led by a Greek shipowner who was found by a London High Court judge to have blown up his own ship in an insurance-fraud scheme. Aries replaced Harry Petrakakos on its management team in time for the company's public filing of the $275m issue with the US Securities and Exchange Commission.

Top's announcement confirms a 12 May report by TradeWinds that the owner and underwriter Cantor Fitzgerald had been forced to pull the offering in the New York market for lack of investor interest, casting the Nomikos acquisition into doubt.

Frontline has shaken the waters once again by selling three single hulled Suezmaxes to Ocean Tankers. The vessels under question are the ‘Front Spirit’ (DWT 147,273 – BLT 1993), the ‘Front Emperor’ (DWT 147,253 – BLT 1992) and the ‘Front Lillo’ (DWT 147,143 – BLT 1991) and fetched approximately a total of US$ 92 million.

Further in this week’s Suezmax traffic, double hull Minerva controlled ‘Spetses’ (DWT 147,916 – BLT 1996) and the Lemos C.M. owned ‘Seastar’ (DWT 148,435 – BLT 1996) were sold to a German KG for US$ 69 million each. Both vessels have an eight-year t/c to Sanko at US$ 33,400/day.

Various rumors indicate that Top Tanker acquisition of Elka Bene and Elka baluni from European Navigation was temporary freezed becuase the Nasdaq listed company phases problems with their equity offerings.

It seems that the falling freight market is not bothering Peter Georgipoulos who is aiming to raise approximately US$ 350 million from an initial public offering of Genco Shipping & Trading. According to the prospectus distributed by Genco, the company has taken delivery of 15 vessels amounting approximately 780,000-dwt.  The fleet’s average age is 8-years that will be quite attractive for charterers according to same prospectus.

On the other hand some oppose to the prosperity advertised by various shipping analysts. Quintana Maritme and Eagle Bulk that have US$ 300 million and US4 250 million dry bulk IPOs lined up may face problems to sell their shares as a 25 pcnt expansion in the world fleet pushes down freight rates and shipping stocks, according to Bloomberg.

Top Tankers bulk-carrier deal made once again headlines as it was rumoured failed for a while, but company officials indicate that the listed company is on the final stages of materializing the 15-vessel deal. The transaction includes nine Handymax, three Panamax and three Capesize vessels and of course it is going to be financed by another equity offer by Top Tankers. The vessels are going to have a time charter back to the sellers at approximatelly US$ 357,000/day.

Furthermore, Rumours that the company has acquired European Navigation managed and owned ‘Elka Bene’ (45,666 – BLT 2002) and ‘Elka Baluni’ (DWT 45,300 – BLT 2002) for US$ 48 million each was confirmed. Again the vessels are going to be financed by an equity offering