Saipem preferred buyer could be from the GCC or Italy
Saipem, the listed Italian oil industry services group controlled by the petroleum giant Eni, is more likely to attract interest from the GCC or Italy. This was reported as part of an analysis in Milano Finanza which did not quote sources. The report said that Rosneft of Russia, which has expressed an interest in Saipem, is an unlikely candidate. This is not only because of the sanction against Russia, but also because of a proposal previously made by Rosneft to former Eni Chief Executive Paolo Scaroni to have a stake in Saipem in exchange of some warranted orders has been rebuffed and is likely to be refused in the future. The report said that Rosneft has debts of USD 55bn and has asked the Russian Government for USD 45bn.
Subsea 7 and Seadrill of Norway, also mentioned as potential buyers, are unlikely buyers because they have contract with low marginality. Instead, the report said that either an Italian solution with Fondo Strategico Italiano a local financial institution, or a Sovereign Wealth Fund from the GCC where Saipem is present is a more likely and preferred solution by many investment banks such as Mediobanca. The report said that Citi, which is advising on the sale, will receive offers for Saipem in January 2015.
Milano Finanza weekend edition