Canada: Davie Yards Ends Discussions with Fincantieri

July 15, 2011

Davie Yards announced today that it has terminated discussions with Fincantieri – Cantieri Navali Italiani, regarding the proposed acquisition of the shipyard.

“The interested parties have concluded that it is not possible to reach an agreement within the time allowed to submit a bid on July 21st for the National Shipbuilding Procurement Strategy (“NSPS”)” said the President and CEO of Davie, Mr. Gustav Johan Nydal. He continued, “Unfortunately, the two-week extension granted by the federal government to submit a valid bid was not sufficient to conclude a deal with Fincantieri, we have tried but the delay is too short.”

Davie also obtained today an order from the Québec Superior Court (the “Court”) extending the stay of proceedings ordered by the Court to July 22, 2011, the whole pursuant to the Companies’ Creditors Arrangement Act (“CCAA”).

This extension will allow Davie to consider all options for the future of the yard.

About Davie Yards Inc.

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 185 years of operating experience, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The Corporation has a focus on building large and complex offshore service vessels and rigs, and other sophisticated vessels for commercial and governmental use.

About Fincantieri

Fincantieri is one of the world’s most prominent and diversified shipbuilding groups. With more than 7,000 ships delivered during two centuries, it has extensive experience in the construction of merchant and military vessels. To encourage the group’s growth, Fincantieri has developed a series of initiatives in fields close to its core business, including ship repairs and conversion, marine systems and components, and mega-yachts. Headquartered in Trieste, Italy, the company employs more than 10,000 people and has eight shipyards in Italy and four in the United States. Fincantieri’s US subsidiaries build ships for commercial and government customers, including the U.S. Navy and Coast Guard. Fincantieri had a turnover of approximately $ 4.0 billion in 2010.

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Source: Davie Yards, July 15, 2011.