Trico Marine shares soar on acquisition optimism

Trico Marine Services Inc. said Friday it agreed to buy a 51.5 percent stake in DeepOcean, and has made an offer to acquire the remaining shares. The total offer values the equity of DeepOcean at NOK 3.5 billion ($682 million) excluding debt.

Lehman Brothers analyst James C. West said the combination should broaden its scope of asset and technology offerings and allow it to grow further in the subsea service market. West predicts the deal should boost Trico Marine's 2009 earnings by more than 10 percent. He maintained his "Overweight" rating.

Jefferies & Co. analyst Judson Bailey suggested Trico Marine shares could jump by as much as 40 percent over the next year as it integrates DeepOcean's subsea services.

The deal, which is subject to certain closing conditions and regulatory approvals, is set to go before shareholders on May 27. The offer period is expected to last about a month. The deal is set to close within two weeks after the offer period ends.

The companies said the deal will create one of the world's largest providers of integrated subsea services.

Trico Marine shares leaped $3.28, or 9.9 percent, to $36.29 in afternoon trading. The stock has traded between $29.04 and $43.42 in the past year.