GE, Siemens Considering Bid for Dresser Rand


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.

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