Published on 28 Dec 2023 on GuruFocus.com via Yahoo Finance
What Does Star Bulk Carrier's Purchase of Eagle Bulk Shipping Mean for Investors?
I recently read about Eagle Bulk Shipping Inc.'s (EGLE, Financial) announced acquisition by Star Bulk Carrier's Corp. (SBLK, Financial) in an all-stock merger with a market capitalization of $2.1 billion. Petros Pappas, Star's CEO, will retain his leadership role and Eagle management will assume supporting roles.
Warning! GuruFocus has detected 7 Warning Sign with EGLE.
According to a recent Barron's article, the merger createsthe fourth-biggest commodities carrier, one that is large enough to be attractive to a wider pool of investors such as mutual funds that normally aren't interested in companies worth less than $1 billion.