Partner Article

GE to make improved Wellstream offer

OIL and gas pipeline maker Wellstream could be the target of an improved £805m takeover offer from multinational giant General Electric.

The Newcastle is firm set to be approached with an increased offer from GE, according to reports, at 800p per share, compared to its 750p approach made two weeks ago.

The US conglomerate, which is being advised by Goldman Sachs, has already bid twice for the prized UK asset.

However, Wellstream, led by chairman John Kennedy, is understood not to be prepared to open discussions unless a price of 800p is surpassed.

National Oilwell Vargo has also submitted a proposal, but at a much lower value of 700p. Saipem, 43pc-owned by Italian energy giant Eni, has been linked with speculation over Wellstream for some time and sent a letter of interest without specifying a price.

Walker-based Wellstream is the world’s largest global supplier of flexible pipelines for the oil and gas sector. But its main attraction is its Brazilian business.

This was posted in Bdaily's Members' News section by Ruth Mitchell .