CGG Withdraws its Offer to PGS
October 05 2004 - 4:25PM
PR Newswire (US)
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 +33-1-64-47-36-75 Christophe BARNINI
+33-1-64-47-38-10
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