GE Launches Bid for British Group Wellstream

Dec. 13, 2010
Deal is worth $1.3 billion

General Electric said on Dec. 13 that it had launched a friendly takeover bid worth $1.3 billion for British oil services company Wellstream Holdings.

GE said it hoped the offer, $1.3 billion, would be completed in the first quarter of 2011.

Wellstream has twice rejected offers from GE but the parties in the last few days managed to reach an agreement, the Financial Times newspaper reported.

Wellstream is active at two production sites in Britain and Brazil, employing about 850 people and is a leading supplier of flexible pipes for the oil and gas sector.

Its operation in Brazil is among its chief attractions, with the Brazilian energy giant Petrobras among its biggest clients.

Wellstream last year had an operating profit of $79 million from sales of $602 million.

Copyright Agence France-Presse, 2010

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