CGG Withdraws its Offer to PGS

CGG Withdraws its Offer to PGS 


PARIS, October 5  /PRNewswire-FirstCall/ -- On September 1, 2004, CGG made an
offer to the Board of Directors of PGS for the acquisition of the PGS seismic
business for a total consideration of $900 million, including $800 million in
cash and $100 million in CGG shares.

Following the immediate rejection of this offer by PGS, CGG and its counsel
have sought clarification from PGS on the main issues which it believed
justified this negative response, with a view to the possibility of addressing
such concerns by means of adequately adjusted proposals.

The conclusion of this exchange is that, unfortunately, the gap existing
between the two parties, in particular concerning the valuation of the
transaction under consideration and further exacerbated by the perception of
recently improving seismic markets, is far in excess of what can be reasonably
expected to be bridged under a final negotiation process.

As a consequence, CGG has decided to withdraw its offer of a potential
combination with PGS seismic services, and will continue to pursue strategic
alternatives aimed at creating value for its shareholders.

The Compagnie Generale de Geophysique group is a global participant in the
oilfield services industry, providing a wide range of seismic data acquisition,
processing and geoscience services and software to clients in the oil and gas
exploration and production business. It is also a global manufacturer of
geophysical equipment.

http://www.cgg.com/ 

DATASOURCE: Geophysique



CONTACT:  Contacts : Christophe PETTENATI-AUZIERE [phone]

Christophe BARNINI [phone]

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