Proxy Blog

Chicago Bridge & Iron 

April 11, 2018

The proxy for a special meeting of this engineering, procurement and construction company had the seven proposals related to a merger with another company. The materials were complicated and technical.  

In researching the transaction, the following key factors were identified: 

  • The merger is actually an acquisition of Chicago Bridge & Iron 
  • Major financial investors in the company are in favor of the deal 
  • The company stock has not performed well for an extended time 

A McKinsey & Company study from years ago showed that only 1 out of 7 acquisitions created shareholder value. One of the most common reasons for the lack of shareholder value creation (for the acquirer) is a transaction price that is too high. 

This proxy is for the company being sold, hence a high selling price is good. Based on available information, Magni voted for all seven proposals.