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Wellstream could be set for improved offer

SPECULATION is mounting that General Electric (GE) is set to make an improved offer for Newcastle-based oil and gas pipeline maker Wellstream after four hedge funds increased their stakes in the firm.

Earlier this month it emerged that GE had seen its £755m bid for Wellstream rejected, with the American firm saying it was “disciplined” about deals and it might not make another approach or could do so “on less favourable terms”.

However, financial reports filed on Friday show that four hedge funds increased their holdings lin Wellstream last week, prompting reported speculation that GE could be set for a return GE bid.

But, according to Reuters, this optimism appears at odds with Wellstream’s largest investor, Schroders Plc, which has sold two-fifths of its stake, an example of so-called “top-slicing” where traditional investors trim holdings during a takeover tussle to lock in gains.

Meanwhile, analysts and newspaper have said rivals National Oilwell Varco Inc and Saipem SpA could also bid for the Walker-based manufacturer.

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