Saipem Shares Up on Report Seadrill May Buy Offshore Arm
MILAN, Nov 18 (Reuters) – Shares in Saipem rose 4 percent after an Italian newspaper said Norway's Seadrill was interested in buying the oil services firm's large offshore drilling business.
Analysts estimate that Saipem's drilling division is worth up to 3.9 billion euros ($5.26 billion), half of Saipem's market capitalisation.
A sale would help the Italian group, and its top shareholder Eni, cut debt, traders said.
"The disposal could help Saipem strengthen its financial structure," said one Milan trader.
Saipem's shares could be worth as much as 26-30 euros, up from from 18 euros currently, analysts at Mediobanca said.
"If confirmed this would be extremely positive news for both Saipem and Eni," according to a Mediobanca's report.
Saipem and Seadrill declined to comment.
Seadrill, worth $22 billion on the market, has grown through a string of acquisitions and could use the proceeds of the U.S. listing of one of its units to make an acquisition in Italy.
Saipem shares were up 4.2 percent at 18.42 euros at 0943 GMT, outperforming the Italian blue chip index FTSE MIB , which was up 0.7 percent.
Shares in Eni, which owns 43 percent of Saipem, were up 0.4 percent at 18.13 euros per shares. ($1 = 0.7421 euros)
(Additional reporting by Stephen Jewkes, Giancarlo Navach, Maria Pia Quaglia in Milan and Gwladys Fouche in Oslo,; Editing by Lisa Jucca and Louise Heavens)
WHAT DO YOU THINK?
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.
Manages 12 Offshore Rigs
- Sanction-Proof Oil Rig Beats US Policy From Cuba to Russia (Dec 19)
- Ifax: Saipem To Conduct Feasibility Study On Rosneft Chemical Plant (Sep 15)
- Saipem to Build Pipelines for Kuwait Refinery Project (Aug 16)
Company: Seadrill Ltd more info
- Norway's Seadrill Gets Two Rival Debt Restructuring Proposals (Oct 23)
- Seadrill's Debt Overhaul Faces Creditor Scrutiny (Oct 02)
- Seadrill Files for Bankruptcy in Bid to Shrink Debt Burden (Sep 13)