Why McDermott International Shares Dropped 11% This Morning

Shares of McDermott International (NYSE: MDR), an engineering and construction firm that specializes in building undersea oil pipelines and floating production facilities, are tumbling today.

News that the company will purchase its troubled onshore peer Chicago Bridge & Iron (NYSE: CBI) in a deal valued at $6 billion -- including the combined debt of the two companies -- sent McDermott shares down nearly 11% in early Tuesday trading, before the stock clawed its way back to a 7.8% loss as of 11:50 a.m. EST.

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Source: Fool.com