Reuters reported that Dutch dredging group Boskalis has made a EUR 1.1 billion all cash offer for maritime services company Smit Internationale NV, saying there was a natural fit between the companies and also synergy benefits, pushing Smit shares up.

Royal Boskalis Westminster Group NV said in a statement that it planned to offer EUR 62.50 per Smit share and had invited Rotterdam based Smit to discuss the proposed deal and to get the support of its management and supervisory boards.

Boskalis said that it would merge Smit's salvage, heavy lift and transport activities with its operations, integrate Smit's terminals services unit with peer Lamnalco and divest Smit's harbor towage activities, which make up 19% of annual sales. It added that there was a natural fit between most of its operations with Smit's activities, while the combination of Smit's terminals unit with Lamnalco would create significant synergy benefits.

Mr Michael Roeg and Mr Ralf Jacobs analysts at Rabo Securities said that Boskalis could easily finance the deal with debt but Smit shareholders could demand a higher price. They added that "We cannot imagine the Boskalis share price to respond positively to the offer."

In February 2008, Smit rejected a USD 300 million bid for its terminals division from Lamnalco, a JV of Boskalis and Saudi group Rezayat, saying its terminal operations were part of its strategy.