The recommended offer is thought to be just under Wellstream's 800p asking price. In recent weeks the Newcastle-based company's shareholders have pressed the board, led by chairman John Kennedy, to accept a deal with GE. Insiders say this meant Wellstream had to be more flexible on its price demands, which at 800p a share would value the company at £805m.
National Oilwell Varco – which had also been given access to Wellstream's confidential financial information – is thought to be waiting to see the price GE put on the table before making a move.
In October, GE, which is being advised by Goldman Sachs, said it was "disappointed" Wellstream had not accepted the proposal and that it was "disciplined in its acquisitions and, as such, there can be no certainty that it [GE] will take any further action".
Shares in Wellstream hit a year high of 789p after news of the initial bid, but have slipped in recent weeks.On Friday shares rose 0.1pc to 747p.
For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment