Dresser-Rand attracts acquisition interest from GE and Siemens
There are talks of a possible merger between Dresser-Rand Group and Swiss pump maker Sulzer. At the same time there are reports of GE and Siemens interested in making an offer.
Sulzer recently make a statement saying that is in the midst of “non-exclusive” discussions with Dresser-Rand “regarding a potential transaction.” However, the company did not provide further information.
A spokesperson for Dresser-Rank, Blaise Derrico, said that company policy is not to talk about matters concerning mergers and acquisitions.
A merger with Sulzer would combine Sulzer’s industrial pumps with Dresser-Rand’s compressors and turbines that serve the oil and gas industry. The merger would allow them to have a much bigger presence in providing energy services and equipment.
Currently the North American drilling boom is causing a surge in demand for energy equipment.
If the two companies merge it would be worth more than $11 billion.
Dresser-Rand shares rose by 9.5 percent ($6.88) to $79.91 Friday on the New York Stock Exchange. In the last three trading sessions the stock has increased, following news that it was in talks with Sulzer about a merger.
Siemens and GE interested in Dresser-Rand
Despite talks of a merger between Sulzer and Dresser-Rand, there are also reports that General Electric and Siemens are going to be making an offer to buyout Dresser-Rand.
Bloomberg cited a Siemens offer of more than $85 a share and people familiar with the matter told the Financial Times that General Electric is also considering whether to make a bid.
The two companies have not made a comment on the matter though.
A 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.”