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Citi plays down Wellstream speculation

ANALYSTS at Citigroup yesterday poured cold water on the prospect of an intense bidding war for Newcastle-based oil and gas pipeline maker Wellstream, which is understood to be in the sights of a number of potential suitors.

General Electric, Saipem, Cameron International and National Oilwell Vargo are all said to be interested in the oil services group.

However, Wall Street titan Citigroup believes that despite its plethora of potential bidders, a takeover of the group remains unlikely.

“We think the suitors’ identity doesn’t matter and a price would be hard to agree on,” said analyst Kenan Najafov. “Whoever tries to buy the stock is likely to be careful about the price.”

Najafov reckons that predators are likely to be looking for a bargain, and will position themselves as the “saviour” of Wellstream.

This was posted in Bdaily's Members' News section by Ruth Mitchell .