CGG of France Said to Weigh Sale After Approach From Technip
2014-11-19 19:57:30.305 GMT
By Tara Patel, Dinesh Nair, Ruth David and Matthew Campbell
Nov. 19 (Bloomberg) -- CGG SA, the French seismic surveyor
of oil and natural-gas fields, is weighing a sale of the company
after being approached by Technip SA, people with knowledge of
the matter said.
CGG, which is worth about 1.2 billion euros ($1.5 billion),
rejected an initial offer from Technip as too low and talks are
continuing, said the people, who asked not to be identified
because details of the proposal are private. No final decision
has been made and CGG may decide against a sale, they said.
The French government, whose fund owns stakes in both CGG
and Technip according to Bloomberg data, is pushing for a
combination of the companies, said one of the people. CGG could
also attract interest from other buyers, the people said.
Shares in the the Paris-based operator of specially-
equipped vessels have been volatile in recent months as the oil-
services company grapples with global oversupply in the
industry. The stock has declined 48 percent this year.
The company, which has renegotiated debt terms and cut its
fleet and workforce this year, has been hit by falling demand
from customers amid plummeting crude prices.
A spokesman for CGG declined to comment. Representatives
for Technip did not immediately respond to requests for comment.
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Today’s top energy stories: ETOP <GO>
--With assistance from Aaron Kirchfeld and Manuel Baigorri in
London and Jacqueline Simmons and Francois de Beaupuy in Paris.
To contact the reporters on this story:
Tara Patel in Paris at +33-1-5365-5058 or
tpatel2@bloomberg.net;
Dinesh Nair in London at +44-20-3525-3212 or
dnair5@bloomberg.net;
Ruth David in London at +44-20-3525-8095 or
rdavid9@bloomberg.net;
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net
To contact the editors responsible for this story:
Will Kennedy at +44-20-7073-3603 or
wkennedy3@bloomberg.net
Aaron Kirchfeld, Elizabeth Fournier
2014-11-19 19:57:30.305 GMT
By Tara Patel, Dinesh Nair, Ruth David and Matthew Campbell
Nov. 19 (Bloomberg) -- CGG SA, the French seismic surveyor
of oil and natural-gas fields, is weighing a sale of the company
after being approached by Technip SA, people with knowledge of
the matter said.
CGG, which is worth about 1.2 billion euros ($1.5 billion),
rejected an initial offer from Technip as too low and talks are
continuing, said the people, who asked not to be identified
because details of the proposal are private. No final decision
has been made and CGG may decide against a sale, they said.
The French government, whose fund owns stakes in both CGG
and Technip according to Bloomberg data, is pushing for a
combination of the companies, said one of the people. CGG could
also attract interest from other buyers, the people said.
Shares in the the Paris-based operator of specially-
equipped vessels have been volatile in recent months as the oil-
services company grapples with global oversupply in the
industry. The stock has declined 48 percent this year.
The company, which has renegotiated debt terms and cut its
fleet and workforce this year, has been hit by falling demand
from customers amid plummeting crude prices.
A spokesman for CGG declined to comment. Representatives
for Technip did not immediately respond to requests for comment.
For Related News and Information:
CGG Modifies Debt Terms as French Oil Surveyor’s Loss Tapers (3)
NSN NEMOQD6K50YS <GO>
CGG Plans to Cut Fleet, Jobs After Second-Quarter Loss (1)
NSN N9MDVH6S9733<GO>
CGG Drops After Exane Says Surveyor Faces ‘Severe Difficulties’
NSN N9634P6KLVR5 <GO>
Hostile Takeovers Unlikely in Seismic Industry, CGG CEO Says (1)
NSN N7H2J46KLVRK <GO>
CGG Falls in Paris as Waning Seismic Survey Demand Leads to Loss
NSN N578OB6S9771 <GO>
CGG Slumps Most in Five Years After Cutting Earnings Outlook (1)
NSN MXYM066JIJVO <GO>
CGGVeritas earnings history: CGG FP <EQUITY> CH2 <GO>
Today’s top energy stories: ETOP <GO>
--With assistance from Aaron Kirchfeld and Manuel Baigorri in
London and Jacqueline Simmons and Francois de Beaupuy in Paris.
To contact the reporters on this story:
Tara Patel in Paris at +33-1-5365-5058 or
tpatel2@bloomberg.net;
Dinesh Nair in London at +44-20-3525-3212 or
dnair5@bloomberg.net;
Ruth David in London at +44-20-3525-8095 or
rdavid9@bloomberg.net;
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net
To contact the editors responsible for this story:
Will Kennedy at +44-20-7073-3603 or
wkennedy3@bloomberg.net
Aaron Kirchfeld, Elizabeth Fournier