Subsea 7 says no to Baker Hughes takeover

According to the Wall Street Journal (WSJ), Baker Hughes, a GE company, has held talks to acquire subsea services contractor Subsea 7.

The WSJ cited people close to the matter which claimed that negotiations broke down over valuation.

Even though initial negotiations broke off, one of WSJ’s sources stated that Baker Hughes and Subsea 7 could potentially reignite talks. The subsea engineering, construction, and services company had an estimated value of $5.4 billion on Tuesday, October 10.

Reuters reported that shares in Subsea 7 rose on Wednesday as a consequence of the unconfirmed takeover report.

Before the report, the company’s stock traded down following a cut in stock rating by Goldman Sachs. The Oslo Stock Exchange did suspend listing of Subsea 7 to investigate changes in share price as the news of the takeover talks spread.

Reuters also cited a statement by Subsea 7 in which the company said it was “aware of…press speculation and subsequent share price movement. The company has a policy not to comment on speculation or rumors.”

Chairman and top stockholder of Subsea 7, Kristian Siem, gave a short statement for the news agency by saying: “As a general comment, I can say that everybody in this industry talks and that may lead to rumors. But that does not mean the rumors are correct.”

Categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: