Thu, Apr. 23, 5:49 PM
- At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
- HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
- These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
Wed, Mar. 25, 2:10 PM
- European Union antitrust regulators have suspended their investigation into Siemens' (OTCPK:SIEGY -0.6%) $7.6B bid for Dresser-Rand (DRC -0.1%) while waiting for "important information" from the German company.
- Siemens says the deal is still on schedule and expects to close in the summer of 2015 or earlier, but says it cannot comment further on the EU's request.
- EU regulators have expressed concerns that the merged company would reduce competition in turbo compressors and drivers for trains.
Wed, Mar. 11, 7:46 AM
- EU antitrust regulators have extended their investigation into Siemens' (OTCPK:SIEGY) $7.6B proposed takeover of Dresser-Rand (NYSE:DRC), Reuters reports.
- The European Commission will now decide by July 14 instead of June 30 whether to clear the deal.
- Previously: European Commission to probe Siemens' proposed deal for Dresser-Rand (Feb. 13 2015)
Fri, Feb. 13, 11:42 AM
- The European Commission says it has opened an investigation to assess whether Siemens' (OTCPK:SIEGY +1.5%) proposed $7.6B acquisition of Dresser-Rand (DRC +0.1%) is in line with EU antitrust regulations.
- Siemens is seeking to reinforce its presence in the U.S. shale oil and gas industry through the deal; both companies supply turbo compressors as well as the engines which drive the compressors.
- The EC now has 90 working days, until June 19, to complete its probe.
Dec. 9, 2014, 4:43 AM
- Despite a decline in oil prices, Siemens (OTCPK:SIEGY) Chief Executive Joe Kaeser announces he would "not even think about walking away" from September's $7.6B Dresser-Rand (NYSE:DRC) deal.
- Siemens also see higher synergies from the Dresser-Rand purchase, and is now targeting 30% more savings from the acquisition. The group previously said it expected more than €150M in annual synergies by 2019.
- Previously: Siemens agrees to buy Dresser-Rand for $7.6B (Sep. 22 2014)
Nov. 13, 2014, 7:16 AM
- Rolls-Royce (OTCPK:RYCEY) expects to complete the sale of its energy gas turbine business to Siemens (OTCPK:SIEGY) by the end of the year, paving the way for a £1B ($1.58B) share repurchase.
- The company also affirmed its full-year earnings guidance which it had lowered last month when it announced a major cost cutting drive to boost profitability.
- Previously: Siemens unveils overhaul, confirms $1.3B deal for Rolls-Royce energy business
Nov. 6, 2014, 4:27 AM
- Siemens (OTCPK:SIEGY) is selling its hearing-aid unit to P-E firm EQT Partners and Santo Holding in a deal valued at €2.15B ($2.68B). EQT’s goal is to position the business for an eventual IPO.
- The announcement comes as Siemens reported €1.45B in net profit for the fourth quarter, a 44% increase. Despite the profit boost, the company expects revenue to remain flat next year.
- The divestiture of Siemens Audiology Solutions follows the recent sales of two other parts of Siemens' health care business, hospital information-technology and microbiology.
- Previously: Siemens to shed hearing-aid business
Oct. 22, 2014, 2:54 AM
- Siemens (OTCPK:SIEGY) is in advanced talks to sell its hearing-aid business, which could be valued at up to €2B ($2.55B), WSJ reports.
- P-E firm Permira Holdings is bidding for the hearing-aid unit by itself, while rival EQT Partners, may form a consortium with hearing aid maker GN Store Nord (OTCPK:GNNDY) to acquire the assets.
- Siemens tried to sell the unit in 2010 but was unable to find a buyer due to its declining operating profit at the time.
Sep. 22, 2014, 7:25 PM
- Siemens (OTCPK:SIEGY) lost out to GE for Alstom's gas turbine business earlier this year but has now acquired Dresser-Rand (NYSE:DRC), a major supplier of equipment such as compressors and gas turbines used to exploit shale resources.
- But Siemens is paying up for the privilege, writes Heard On The Street's Thao Hua, at more than 14x the consensus estimate for Dresser's 2015 EBITDA - higher than previous deals in the sector and far higher than Siemens' own multiple of ~9x.
- The rate of growth in the gas turbine sector is falling, estimated to hit a trough in 2015 by Siemens' own metrics; the company expects the market will heat up again at an assumed annual growth rate of 6%-8%, but that remains to be seen.
- In terms of synergies, Siemens' scale and wide reach present opportunities to raise DRC's margins and revenue growth, but expectations of €150M ($192M) of annual synergies isn't expected to be reached until 2019.
Sep. 22, 2014, 1:57 AM
- After much speculation, Siemens (OTCPK:SIEGY) has announced that it would buy Dresser-Rand (NYSE:DRC) for $7.6B, and says that its $83/share bid was unanimously supported by Dresser-Rand's board of directors.
- Siemens also announced the sale of its 50% stake of household goods joint venture BSH to partner Robert Bosch for €3B ($3.9B).
- Siemens expects to close the Dresser-Rand deal by summer 2015, while it aims to complete the sale of its BSH stake in the first half of 2015.
- Previously: Siemens close to acquiring Dresser-Rand for $6B
Sep. 21, 2014, 2:48 PM
- Siemens (OTCPK:SIEGY) is reportedly on the verge of a $6B all-cash deal to acquire U.S. oilfield equipment maker Dresser-Rand Group (NYSE:DRC).
- Siemens is expected to pay low- to mid-$80s per share. DRC closed Friday at $79.91, and is +18% since Wednesday over takeover speculation.
- Sources say the all-cash bid has trumped a competing offer from Sulzer AG (OTC:SULZF), which was looking to merge with Dresser-Rand in an all-stock deal.
- Discussions are continuing and could still fall apart.
Sep. 19, 2014, 5:21 PM
- The latest speculation over Dresser-Rand (NYSE:DRC) now includes GE, which Financial Times reports is holding talks with DRC management about a possible takeover and is deciding whether to launch a bid.
- If it does, it could be the second time GE has faced off against Siemens (OTCPK:SIEGY) over a multibillion-dollar deal in the past six months after competing over the takeover of the energy businesses of Alstom in June.
- Siemens reportedly is in talks with DRC about a ~$80/share offer, and Swiss industrial pump maker Sulzer (OTC:SULZF) has said it is in talks with the U.S. oilfield equipment manufacturer about a possible merger.
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, 6:50 AM
- Siemens (OTCPK:SIEGY) is planning to offer more than $6.1B, or $80/share, for Dresser-Rand (NYSE:DRC), Reuters reports quoting Germany's Manager Magazin.
- Siemens' move could trigger a bidding war with Sulzer (OTC:SULZF), which announced on Wednesday that it is in advanced talks for a merger with the compressor and turbine maker.
- DRC +4.1% premarket
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).
Aug. 5, 2014, 4:53 PM
- Cerner (NASDAQ:CERN) is acquiring Siemens' (OTCPK:SIEGY) healthcare IT unit for $1.3B in cash. The deal is expected to close in Q1 2015, and be financed with cash on hand.
- The purchase is expected to boost Cerner's 2015 EPS by more than $0.15, and its 2016 EPS by more than $0.25. Cerner and the Siemens unit are expected to have $4.5B in 2014 sales between them.
- Cerner CEO Neal Patterson: "Siemens' health care IT assets provide additional scale, R&D, an impressive client base, and knowledgeable and experienced associates who will help Cerner achieve our plans for the next decade." He also sees opportunities to integrate EMR data with "advanced diagnostic and therapeutic technologies."
- As part of the deal, Cerner and Siemens will partner on projects that "integrate health IT with medical technologies for the purpose of enhancing workflows and improving clinical outcomes." The alliance has an initial 3-year term; each company will contribute up to $50M.
- CERN +0.5% AH.
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