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ShawCor provides pipeline services
ShawCor provides pipeline services
(Ewan Nicholson/)

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At ShawCor, disappointment masks an opportunity

Shareholders who were betting on a takeover of Canadian pipe-coating maker ShawCor are bailing out Tuesday after the company unveiled a recapitalization instead, but they may be missing a longer term opportunity.

ShawCor is borrowing money to buy out the class of voting shares held by the company’s controlling shareholder, Virginia Shaw, for $43.43 a share in cash and stock. The plan is then to pay a special $1 a share dividend. That’s after a sale process came to naught, for reasons that aren’t entirely clear.