Supply Chain Research

Tanker-operator DHT Holdings rejected the unsolicited bid from Frontline as being undervalued and coming opportunistically at a low point in the cycle. DHT’s stock price was the second worst performer among the big tanker operators in 2016 – after Frontline itself – and has only been the third best performer so far this year. At the same time tanker rates dropped 17% in January after a 45% rise in the fourth quarter of 2016. Frontline may have to make a higher offer and demonstrate a brighter outlook to get DHT on board.