Fri, May 8, 2:29 PM
- Siemens (OTCPK:SIEGY +1.2%) is set to secure unconditional EU approval for its $7.6B bid for Dresser-Rand (DRC +1.6%), according to a Reuters report.
- The European Commission warned in February that the deal might reduce competition and drive up prices, but apparently it has not sent a statement of objections to Siemens, which reportedly would mean "unconditional clearance."
- Siemens' acquisition of the supplier of equipment such as compressors and gas turbines used to exploit shale resources would pose strong competition in the U.S. market for the likes of GE.
Thu, Mar. 19, 12:41 PM
- Siemens (OTCPK:SIEGY -5.4%) slumps after CEO Joe Kaeser tells investors that falling oil prices and operational difficulties are hurting profit and sales at the engineering company.
- Weakening demand for items such as gas turbines and oilfield equipment will lead to a “moderate organic revenue decline” in the company's FQ2, Kaeser says, adding that operational difficulties at the wind power and process industries units likely will weigh on the profitability of Siemens’ industrial business that quarter.
- Separately, a report from the German magazine Manager suggests the Siemens merger with Dresser-Rand (DRC -1.5%) could be in trouble.
Sep. 19, 2014, 5:37 PM
Sep. 19, 2014, 12:46 PM
Sep. 19, 2014, 12:26 PM
- Renova, a holding company of Russian oligarch Victor Vekselberg, says it has bought a 4.99% stake in Dresser-Rand (DRC +10.2%), adding a twist to recent speculation on DRC's future.
- Renova also holds a 33.19% stake in Swiss pump maker Sulzer (OTC:SULZF), which said earlier this week it was in talks with the U.S. company about a potential deal.
- A new report says Siemens (OTCPK:SIEGY) is preparing a $6B-plus offer for DRC.
- Meanwhile, DRC is downgraded to Sell at Gabelli, which says shares have run up too far on the M&A talk; also, a potential antitrust review, while likely not an obstacle, could mean a deal close would be 6-9 months out.
Sep. 19, 2014, 9:24 AM
Sep. 18, 2014, 9:12 AM
- Dresser-Rand (NYSE:DRC) +1.5% premarket after William Blair says the company could be valued at $80-$100/share in an M&A deal with limited downside.
- Blair cites an increasing likelihood of a merger transaction after Sulzer confirmed yesterday that it is in talks to acquire DRC; the firm keeps its Outperform rating on the stock while raising its price target to $82 from $70.
- Meanwhile, Gabelli continues to believe DRC has an asking price somewhere above $80 to be acquired by Siemens (OTCPK:SIEGY).
Sep. 17, 2014, 12:10 PM
- Dresser-Rand (DRC +8.6%) spikes after Swiss pump maker Sulzer (OTC:SULZF) says it is in advanced discussions about a merger with the U.S. oilfield equipment maker.
- Sulzer's statement followed a report by a Swiss newspaper which said the two companies could announce a merger as soon as next month.
- A report last month said DRC was working with Morgan Stanley to prepare for possible takeover bids.
Aug. 7, 2014, 4:12 PM
- Dresser-Rand (DRC +8.6%) spiked into close following a Bloomberg report that it hired Morgan Stanley to prepare for possible takeover bids from companies including Siemens (OTCPK:SIEGY).
- While DRC isn’t actively pursuing a sale, the company is said to have retained Stanley after potential suitors expressed interest; the report says CEO Vincent Volpe Jr. may not even want a sale and is seeking defense advice from the banker.
- Siemens reportedly has been evaluating a bid for DRC since at least 2011; analysts also have mentioned GE, Cameron International (NYSE:CAM) and National Oilwell Varco (NYSE:NOV) as potential buyers in the past.
Aug. 5, 2014, 10:31 AM
- Dresser-Rand's (DRC +2%) Q2 earnings fell 45% partly due to lower bookings from an unnamed Latin American national oil company, but the company says its results were in line with its guidance and that it is seeing a pickup in bookings.
- DRC says new unit bookings increased Q/Q as it starts to see improvement in upstream project activity, including a major award to supply equipment for two large FPSO vessels to be located offshore West Africa; expects new unit bookings will be strong in Q3 and Q4, and raises its full-year outlook for new unit bookings to be at least 10% higher Y/Y.
- Reaffirms FY 2014 earnings guidance, seeing EPS of $2.60-$2.80 vs. $2.65 analyst consensus estimate.
Jul. 23, 2014, 11:55 AM
Jul. 17, 2014, 3:58 PM
- Dresser-Rand (DRC +12.5%) maintains strong gains following a report overnight that Siemens (OTCPK:SIEGY -1.9%) is preparing an offer to buy out the oilfield equipment maker and has opened up talks following its unsuccessful bid to buy Alstom’s energy assets earlier this year.
- Siemens has “huge” firepower to pursue deals toward expanding its energy assets, CEO Joe Kaeser had said after coming up short on Alstom.
- “Strategically it would be a good fit, it would fill some gaps in the portfolio and improve Siemens's position in North America,” Commerzbank analysts say.
- Shares have held up despite some notes of caution throughout the day; DRC s not viewed as a “motivated” seller now, a J.P. Morgan analyst says, and Raymond James believes a takeover is unlikely.
Jul. 17, 2014, 12:46 PM
Jul. 17, 2014, 9:16 AM
Mar. 31, 2014, 12:30 PM
- Dresser-Rand (DRC +2.1%) is started at Gabelli with a Buy rating and $70 price target, citing the company's largest installed base of oil and gas compressors and leading compressor technology, which provides a cash-generative suite of assets with steady, recurring aftermarket revenues.
- Operations are currently challenged, creating aftermarket mix among the highest in industrials, working capital normalization, current valuation, and operational activist ValueAct Capital among potential sources of upside.
Mar. 12, 2014, 8:59 AM
- Dresser-Rand (DRC) -6% premarket after Q4 earnings plunged to $0.43/share from $1.05, which includes a $0.81 reduction caused by the impact of the previously disclosed draft Spanish regulation.
- Total revenue was a lower than expected $827M and below last year's $844M, primarily from the retroactive reduction of the tariffs in the draft Spanish regulation.
- Bookings for Q4 and the year were lower by $23.7M as a result of the draft Spanish regulation; backlog at the end of Dec. 2013 of $2.85B was 3.3% lower than the $2.94B at the end of 2012.
- DRC issued downside guidance for FY 2014, seeing EPS of $2.60-$2.80 vs. $3.11 analyst consensus estimate, and revenues of $2.9B-$3.1B vs. $3.1B consensus.
- DRC recently suspended operations at its pig manure treatment plants in Spain amid discussion over potential new regulation and tariffs; DRC says the plants could resume operating as the regulation hasn't yet been adopted.
DRC vs. ETF Alternatives
Dresser-Rand Group Inc is a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries in various countries.
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