American shipping could see dramatic consolidation with news the owners of TOTE Maritime have lodged a bid to take over tanker giant Overseas Shipholding Group (OSG).

OSG revealed on Friday that Saltchuk Holdings, the owner of TOTE and Foss Maritime, had lodged a $3 per share bid to take over the tanker operator.

OSG’s board said it has commenced a strategic process to explore, review and evaluate a range of strategic alternatives available including the non-binding indication of interest.

Mark Tabbut-chaired Saltchuk already owns 17.5% of OSG’s outstanding shares.

A letter from Saltchuk to OSG investors states: “By its nature, shipping has multi-decade investment cycles and shorter-term economic cycles, both of which are better supported by a privately held family business versus being traded in the public markets.”

The proposed transaction would be funded through a combination of equity capital from Saltchuk, minority capital provided by third parties, and a refinancing of the company’s debt obligations, commitments for which would be in hand prior to signing definitive agreements.