OSLO, Aug 11 (Reuters) - Norwegian seismic survey groups TGS-Nopec
and Wavefield Inseis said on Monday that talks over the weekend to
revive a failed 2007 merger by revising the terms failed to produce results.
TGS blamed the failure on a lack of support from Wavefield management.
Wavefield said it believed a deal was still possible though it could not
immediately obtain written lock-up undertakings from all key employees, as
required by TGS, at the weekend.
The two suppliers of seismic surveys to the oil and gas industry
announced their plan to merge in July 2007, but the deal, initially worth about
$1.2 billion, unravelled after a TGS profit warning hit the value of the
all-stock deal.
Wavefield then halted the merger and relations soured.
The dispute is due to go into arbitration on Sept. 9.
TGS said it offered to increase the exchange ratio and change the board
composition and management structure subject to support from shareholders and
Wavefield management.
Wavefield said in a separate statement that it obtained support "in
excess of 50 percent" from shareholders, board members and employees for revised
merger terms.
"Despite the challenges we have experienced, we still believe it is
possible to regain trust between the parties and establish a strong working
relation within a new merged company," Wavefield Chief Executive Atle Jacobsen
said.
The companies did not say if they planned further talks.
TGS said it would call an extraordinary shareholders' meeting in late
August to consult on the situation.
Wavefield shares closed at 36.50 crowns on Friday, valuing the company at
about $896 million. TGS-Nopec shares closed at 72.40 crowns, valuing it at about
$1.46 billion. Trade on the Oslo bourse resumes at 0700 GMT.
(Reporting by John Acher; Editing by Quentin Webb) ($1=5.269 Norwegian
Crown) Keywords: TGSNOPEC/WAVEFIELD
tf.TFN-Europe_newsdesk@thomson.com
vs
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|