Wellstream rejects GE’s £755 million bid
07 Oct 2010
The oil industry services group Wellstream Holdings has turned down a £755 million bid from giant US conglomerate General Electric.
GE said yesterday the rejection of its bid has come as a disappointment. The London-listed Wellstream, focused on the fast-growing Brazilian offshore market, refused the GE bid which valued the company at 750p-a-share.
"GE is disciplined in its acquisitions, and as such, there can be no certainty that it will take any further action," the company said in a statement to the Stock Exchange.
The company can still make an offer on "less favourable" terms on the completion of due diligence.
According to analysts, GE is not expected to go hostile, not least because its offer is well below the prices of 800p-per-share and above estimated for Wellstream by the market.
Wellstream itself has declined comment, raising expectations that the company may be talking to another possible suitor.