French engineering firm Technip has dropped its big to make an offer for fellow French seismic acquisition and services firm CGG. Technip's shares rose 6% on the announcement, while CGG's dropped 30%.
Technip, which first approached CGG over a possible offer on 10 November, said it make an initial offer, as well as alternative offers, and that no agreement was reached. Technip said it now no longer intends to file a tender offer for Technip.
Responding to the announcement, CGG said Technip's approach had been unsolicited but that it had studied all of the firm's proposals. However, it "considered that none of the proposed options were creating value for the company and its stakeholders."
Despite uncertainty in the current market, which has hit seismic acquisition firms, CGG said it "remains confident in the ongoing execution and the success of its strategy as an independent company. CGG is showing a solid resilient operational performance as highlighted in the third quarter results with important progresses achieved and milestones met in the transformation plan and the strengthening of the balance sheet.
"With this plan initiated one year ago, accelerated and intensified during the year 2014, and with priorities given to cash generation, CGG is in a position to weather current difficult market conditions while fully benefiting from future geoscience market rebound."
Technip's approach for CGG was made shortly after it was announced that Halliburton had made a bid for Baker Hughes, which was agreed.
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