Technip To Push On With Diversification Plan After CGG Talks Fail

Reuters

PARIS, Dec 15 (Reuters) - French oil services group Technip said on Monday it would press on with its strategy of broadening its range of services despite its failed attempt to buy seismic surveys specialist CGG.

Technip on Sunday ruled out making a formal offer for France's CGG after talks with the company failed to produce an agreement.

Some analysts had cast doubt on the logic of such a deal, arguing there were few synergies with CGG's 3D imaging, processing and equipment activities. Technip shares climbed 6.5 percent on the news in early trading, while CGG shares fell 35 percent.

However Technip Chief Executive Thierry Pilenko said the group had found support among clients for its strategy to expand beyond the group's subsea and offshore/onshore business.

"The reaction from our major clients has been positive, I have received much encouragement to push ahead with this strategy," Pilenko told reporters in a conference call on Monday.

"We have different alternatives. (Acquiring) a part of CGG was one. But we can look at alliances or other types of construction."

In a sign of the strategy, Technip announced on Monday the acquisition of Zimmer Polymer Technologies from Air Liquide , in a deal which Pilenko said was worth several tens of million euros.


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