Wellstream Share Discussion Threads

[wendsworth] 04/10/2010 18:09

Looks like the market thinks this is 'a one horse race'?

[abcd1234] 04/10/2010 12:52

Barclays midday roundup:
"Another stock in the news over the week-end was Wellstream, the oil services firm. US industrial holding company General Electric is reportedly the company that fired the starting pistol on the race to buy the Newcastle-based company, and is still the leading contender, despite other bidders expressing an interest."
~~~~~~~~~~~~~~~~~~

[abcd1234] 04/10/2010 12:11

the FT just said market talk is GE and the others are looking to offer 850, but killing zone is 900p etc

[peterbill] 04/10/2010 08:34

The Newcastle-based company, which makes pipes used in deep-sea drilling, said last month that it had received a "number of preliminary approaches" from different suitors, but declined to reveal their identity.

Perhaps a bidding war from the different suitors :-)

This is a niche market and when deepwater field development picks up again there will be long lead times for the flexibles. GE is looking to position itself at the forefront by buying the company. Smart.

[abcd1234] 03/10/2010 21:03

courtesy of : Niklaus99 , on iii

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
America's General Electric revealed as mystery suitor for Newcastle's £800m pipes maker Wellstream

GENERAL ELECTRIC, the American conglomerate, is the mystery bidder plotting a £800m-plus takeover of Wellstream, a British oil services firm.

The Newcastle-based company, which makes pipes used in deep-sea drilling, said last month that it had received a "number of preliminary approaches" from different suitors, but declined to reveal their identity.

It is understood that Vetco Gray, GE's oil services arm based in Aberdeen, was the initial suitor. If it is successful, the deal would be the biggest for GE in Britain since it bought Amersham, the medical equipment group, for £5.7 billion in 2003. Other bidders have since expressed interest. Sources close to the situation said that National Oilwell Varco, an American group thought to have been one of the rival suitors, is not involved.

Wellstream has hired Rothschild and Credit Suisse, the investment banks, to mount its defence.

John Kennedy, Wellstream's chairman, knows the Vetco Gray business well. In 2004, he led its management buyout from owner ABB, the Swiss engineering group.

GE bought it in 2007 for $1.9 billion (£1.2 billion) as an early step in oil services, which have mushroomed as explorers ratcheted up spending on high-tech equipment needed to access hard-to-reach fields.

Kennedy has been chairman of Wellstream since 2003, when he spun the company out of Halliburton, the American services giant.

The company has carved out a niche in Brazil, where it provides flexible pipes needed to drill the ultra-deep wells off the coast.

Petrobras, the state-owned oil company, is its biggest customer. Wellstream has shifted much of its focus, and manpower, to the country.

Wellstream has long been the subject of takeover speculation because of its limited product offering and heavy reliance on a single customer. It appears that the boom in Brazil prompted suitors to act.

Last month Petrobras cemented its position as one of the world's largest companies after it raised $70 billion to fund the development programme for offshore fields - among the largest discovered in recent years.

Sinopec, China's state oil firm, last week paid $7.1 billion for a minority stake in the Brazilian arm of Repsol, the Spanish oil group.

Wellstream shares have risen by 29% since it revealed the approaches last month. The shares closed on Friday at 776p, valuing the company at £778m.

It is understood that it was not running an auction when GE first approached it, but it has since explored rival offers that could push up the final price. It is unclear, however, whether any deal will get done.

GE is a big employer in Britain, with more than 19,000 workers in fields from television to jet engines, medicine and energy. The company hit out last month at the government's proposed caps on foreign workers. Wellstream, founded in 1983, employs 1,000 people. GE and Wellstream declined to comment.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

[wendsworth] 03/10/2010 15:13

bigbigdave : Many thanks.

After 'shaking out weak holders' the share price has definitely moved back up in the last 2/3 trading sessions. Reckon someone's got wind of imminent offers.

If the Sunday Times article is soundly based then it looks like the auction will commence at 800p. Should that prove to be the case then I don't see the eventual price being much less than 900p.

As ever ..we'll see!

[abcd1234] 03/10/2010 11:36

well spotted Dave
can someone post that piece here?
tia

[bigbigdave] 03/10/2010 10:25

Sunday Times - America's General Electric revealed as mystery suitor for Wellstream - plotting 'an £800m plus takeover'.

[mida5] 01/10/2010 13:52

It certainly moved straight after the Goldman sach news at 12.09

[abcd1234] 01/10/2010 12:59

nice little mini spike there on some v chunky buys (£150k etc).... looks like someone wanted in before the weekend ;O)

[wendsworth] 01/10/2010 12:53

Why the 'leg up'? Positive news about to break?

[mida5] 23/9/2010 21:43

Thanks PeterBill and Wilfman

I was hoping for £8.30/50, hopefully it will not take to long before something comes out.

[nielsc] 22/9/2010 22:17

Hopeful Holder,

Thanks for mentioning WSM on the DGO thread a while back. I opened a small spreadbet at around the £5 mark. Sitting on a nice little profit now. Wish it had been the size of some of my larger holding, but I mustn't grumble.

Hope you have done equally well :-)

Cheers,
Niels

[wilfman] 22/9/2010 21:12

Have been holding these for ages. Nearly sold out a month ago, but held and now very glad. Took some profits today but holding 2/3 of original holding for better news. From what I have read I don't think £10-£10.50 would be unreasonable.

[peterbill] 22/9/2010 20:22

How about 920p ....

[mida5] 22/9/2010 19:39

Any one going to guess at a takeout price

[wendsworth] 22/9/2010 15:33

nellie1973 : Your candour is refreshing. May still be no too late to get on board .See this in the 'bid battle' mode.

[nellie1973] 21/9/2010 19:10

Broker upgrade strangely enough!!I posted rumours of this one being taken over on our site on 27th August. Unfortunately I didn't buy any. Well done to holders, lets hope for a long bid war!

[peterbill] 21/9/2010 10:33

Oil services group Wellstream confirmed a number of takeover approaches. It made the statement after a steady rise in its share price recently. Shares in the group have risen by a third since the start of July following more encouraging trading news and appreciation of its presence in the fast developing oil prospects offshore Brazil.

[phillis] 21/9/2010 10:30

another pe buyer

[simon gordon] 21/9/2010 09:25

Alphaville - 21/9/10

As for price: the "killing zone" for Wellstream on account of its unique technology - only two companies have anything like its offering - will be in the £9 to £10 region, says Olivetree.

"Thanks to the unique nature of the assets, equity multiples are broadly irrelevant here – it is more of a question as to what price a potential buyer is willing to pay to get access to Wellstream's technology and client base. It is very possible that an offer gets competitive, and therefore no suprise to see Wellstream refer to "a number" of approaches."

[fishbournetrader] 21/9/2010 08:23

So what price could this go for? £8 was the talk before but the announcement implies that there is more than one interested party so the price could go higher than this.
Currently trading at £7.60.