Bermuda-based MC Shipping Inc. is being acquired by a newly formed unit of Bear Stearns Merchant Banking in a deal valued at $284 million.

The company said its shareholders will receive $14.25 a share, a premium of 19.6 percent over the closing price on Friday.

MC Shipping said the agreement has a "go shop" provision that allows the company to solicit alternative proposals from third parties for the next 35 days.

If the company ends the agreement with Bear Stearns Merchant Banking, the company has to pay a termination fee of $7.75 million.

MC Shipping shares were recently up 16 percent, or $1.89, at $13.80.