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. 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, 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.
Jul. 31, 2014, 12:45 PM
- Siemens (OTCPK:SIEGY -0.2%) reports FQ3 net profit of €1.37B ($1.84B), up 28% Y/Y, but revenue declined 3.7% to €17.92B from €18.61B and order intake fell 3.5% to €19.41B.
- Profit jumped 51% Y/Y to €548M at Siemens' industry and infrastructure divisions for factory equipment and trains, but energy profit fell 5.8% to €405M, and CEO Joe Kaeser warns that the energy business faces challenges as global conflicts increasingly threaten expansion plans.
- The infrastructure and cities sector reported a €350M profit after a €23M loss in the year-ago quarter.
- Recorded €155M in charges for delays to power transmissions projects, adding to more than €1.1B in such costs since 2011 and €350M for late train deliveries.
- Affirmed earlier guidance for the fiscal year ending in September, and said it continues to expect EPS to increase at least 15%.
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, 7:08 AM
- Siemens (OTCPK:SIEGY) is looking to acquire Dresser-Rand (NYSE:DRC), German Manager Magazin reported this morning.
- The report also states that Siemens has prompted Lazard to form the offer to extend to the turbine maker, and would consider a hostile takeover if necessary.
- Dresser-Rand has a current market value of $4.6B.
Jul. 17, 2014, 6:56 AM
- As part of a restructuring plan, Siemens (OTCPK:SIEGY) has announced it will sell its microbiology unit to Beckman Coulter, a subsidiary of Danaher (NYSE:DHR). The deal will allow Siemens to concentrate more on its healthcare division's in-vitro business.
- The transaction is expected to close in the first quarter of 2015.
Jul. 8, 2014, 6:54 AM| Comment!
Jun. 23, 2014, 2:25 AM
- The last remaining element to the General Electric (GE)-Alstom (ALSMY) deal has now been complete, after the French government secured its 20% stake in Alstom from Bouygues (BOUYF). Bouygues will lend the shares to the French state, in order for the government to become an immediate shareholder.
- After being ousted from the the deal, Siemens (SIEGY) CEO Joe Kaeser says he's still ready to negotiate with Alstom should the agreement between GE and the power equipment company fall apart.
- Previous coverage
Jun. 22, 2014, 10:55 AM
- After receiving the French government's blessing on Friday, General Electric's (GE) improved bid has been officially accepted by Alstom's (ALSMY) board. The approval marks an end to the bidding war between GE and Siemens (SIEGY)-Mitsubishi (MHVYF).
- The closing of the deal is still contingent upon the French government finding an agreement with Bouygues (BOUYF). The former wishes to buy a 20% stake in Alstom before allowing GE to buy the group. After the French state purchases its 20% stake, Alstom will be left as a holding company, paving the way for three 50-50 joint ventures with GE.
- Once the deal is closed, Alstom will then buy GE's train signalling business.
- The approved offer still values the power equipment company at $17B, but prices the Alstom investment in the joint-ventures at $3.4B.
Jun. 21, 2014, 12:13 AM
- GE is the apparent winner in the contest for Alstom (ALSMY), shutting out Siemens (SIEGY) and Mitsubishi (MHVYF), as the French government has given its blessing to GE’s offer while buying a 20% stake for itself - which means GE is now effectively going into business with the French state.
- In the ~$13.5B deal, GE would acquire Alstom’s natural gas turbine operations along with its valuable customer base while selling to Alstom its railroad signaling business, and 50-50 joint ventures would be created for steam turbines, renewable energy and electrical grid systems.
- The concessions will mean a smaller boost to GE's profit and fewer cost savings from the deal, and could complicate decision making in situations where the French government feels it has an interest, a William Blair analyst says.
- GE's Jeffrey Immelt says it's not the straight takeover of the energy business he had envisioned, but that 86% of the deal's synergies - essentially the value of the energy business - were outside of the joint ventures.
- Alstom's board is due to decide on the deal by Monday, when GE's binding offer expires.
Jun. 20, 2014, 11:45 AM
- The Alstom (ALSMY) board will be convened no later than Monday to review and resolve the updated offer from GE as well as the newest proposal from Siemens (SIEGY) and Mitsubishi Heavy Industries (MHVYF).
- Press release
- Previously: Siemens, Mitsubishi update Alstom bid
- Previously: CNBC: GE revised proposal creates three joint ventures
Jun. 20, 2014, 2:55 AM
- Confirming earlier reports, Siemens (SIEGY) and Mitsubishi Heavy Industries (MHVYF) have improved their offer for Alstom's (ALSMY) energy business. The updated bid follows General Electric's (GE) new offer made to the French government yesterday.
- Siemens and Mitsubishi will now pay €8.2B ($11.2B) in cash, in place of their last bid of €7B. This will value Alstom at €14.6B, which is well above GE's €12.4B. Siemens has also expressed it is willing from the start to enter a mobility management joint venture with Alstom.
- Increasing its stake, Mitsubishi is now offering a 40% purchase in Alstom's steam, grid and hydro business, raising its cash payment €3.9B from €3.1. Previously, Mitsubishi planned on creating three joint ventures with Alstom.
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