Wellstream 'talks with bidders' over £755m deal

Oil pipes group Wellstream has entered formal talks with General Electric and National Oilwell Varco over a potential £755 million-plus deal, reports said today.

The UK-listed company has allowed both firms access to its books as it tries to negotiate a higher offer from the two bidders, the Daily Telegraph reported.

No one at Wellstream was available for comment early today.

Wellstream admitted receiving bid approaches in late September. In October, General Electric, the largest US conglomerate, revealed that Wellstream had rejected an approach at 750p a share, or £755 million.

General Electric said it was "disciplined" about deals and it might not make another approach or could do so "on less favourable terms".

The company has been a frequent subject of takeover rumours, with market chatter often linking it to Europe's largest oil services company, Saipem, despite the Italian company saying last year it had no plans for acquisitions in the flexible tubes sector.

Wellstream's manufacturing facility in Brazil, which is keen for locally produced materials to be used in extracting its billions of barrels of oil reserves, is seen as a key attraction for potential buyers.