Chicago Bridge & Iron plans to sell some assets

Engineering and construction company Chicago Bridge & Iron Co. said Monday it has filed with the Federal Trade Commission to resolve ongoing legal issues related to the company's 2001 acquisition of some assets of steel distributor Pitt-Des Moines Inc.

Chicago Bridge & Iron is seeking to license its cryogenic tank technology and sell some construction equipment to Matrix Service Co. for an undisclosed sum.

The company also will subcontract up to $20 million of cryogenic and LNG tank work in the U.S. to Matrix Service over the next few years, and transfer about 70 engineering and construction personnel to Tulsa, Okla.-based Matrix.

The agreement is expected to be complete in the fourth quarter, pending FTC approval.

"This divestiture, if approved, removes the uncertainties surrounding this FTC issue and is in the best interest of our shareholders," CB&I Chief Executive Philip K. Asherman said in a statement.

Shares fell $1.97, or 7.5 percent, to $24.41 during midday trading, as the general market tumbled on turmoil in the financial sector. Matrix shares fell $2.23, or 10 percent, to $21.30.