GE, Siemens Considering Bid for Dresser Rand

0
313

GE, Siemens Considering Bid for Dresser Rand

General Electric Co and Siemens of Germany are considering bids for Dresser Rand, turbine and compressor maker, which could stop a merger between Sulzer, Swiss pump maker and Dresser Rand.

Siemens’ supervisory board might vote on whether to place an offer at a meeting set for next week. According to Reuters, General Electric, which has been holding talks with Dresser-Rand, is considering making a bid.

Both General Electric and Siemens declined to comment. Viktor Vekselberg’s Renova Group, Sulzer’s largest shareholder, said that it has a stake of 4.99% in Dresser-Rand.

Sulzer’s shares closed 4.3% percent down amid fears that Siemens could make a move that would derails plans for a merger with Dresser-Rand. Sulzer is headed by Peter Loescher, former CEO of Siemens.

When asked about a potential bid for Dresser by Siemens, Sulzer spokeswoman said, “This isn’t something we would like to comment on. As we have said before we are in non-exclusive negotiations with Dresser-Rand. This means that for both parties other options are not excluded.”

Market Watch reported that Siemens’ offer of above $6 billion or $80 a share, might be more attractive to Dresser-Rand.

In the recent months, there have been rumors that Dresser-Rand is scheduled for a large takeover for big industrial companies like Siemens. Even though Siemens has been working with advisers to assess a potential bid for several years, it has not made any acquisition offer.

A merger between Sulzer and Dresser-Rand would combine the turbines and compressors of Dresser-Rand serving the gas and oil industry with the industrial pumps from Sulzer, giving them a bigger mark at a time when there is a boost in demand for energy equipment and services due to the drilling boom in North America.

Shares for Dresser-Rand gained 9.5% to close at $79.91 on Friday on the New York Stock Exchange.

To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com