Technip Rules Out CGG Bid After Talks Fail

Reuters

PARIS, Dec 14 (Reuters) – Technip has ruled out making an offer for seismic surveys specialist CGG after talks with the company failed to produce an agreement, the French oil services group said on Sunday.

Technip said in a statement it had put forward "a number of alternative options to a tender offer" in discussions with CGG but failed to reach a deal.

"Under these circumstances, Technip informs the market that it does not intend to file a tender offer for CGG," the company said.

CGG had previously rebuffed a 1.47 billion euro ($1.82 billion) takeover offer from Technip in November.

In a statement on Sunday, CGG said it had "remained open to dialogue and studied all proposals" since the emergence of Technip's unsolicited approach but that "the board of CGG considered that none of the proposed options were creating value for the company". "CGG is in a position to weather current difficult market conditions," it added.

Its shares tumbled on Thursday and Friday following a report that the French government had doubts about a Technip tie-up. The stock ended the week at 6.91 euros, down almost 15 percent on Wednesday's close.

The French firm is seeking to broaden the range of services it can offer as oil company clients slash spending in response to a 40 percent drop in the price of oil since June.

The government's blessing was seen as key to any deal because state-owned investment fund BPIFrance owns 7 percent of CGG and 5.2 percent of Technip.

(Reporting by Laurence Frost; Editing by Catherine Evans)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Commercial Director - Terminals
Expertise: Business Development
Location: South Carolina, 
 
Senior Engineer New Rule Implementation
Expertise: Engineering Manager|Environmental Engineer
Location: Deer Park
 
Senior Legal Counsel - Houston, TX
Expertise: Legal
Location: Houston-EP Center Americas, United States, 
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours