Oilfield service firm Wellstream Holdings is believed to be back in talks with General Electric (GE), together with National Oilwell Varco, over a potential £755million takeover deal.
The latest discussions come nearly two months after Wellstream spurned an earlier £770million-plus bid from GE.
It is thought its Aberdeen-based Vetco Gray subsidiary was behind the failed 750p-a-share cash offer confirmed by GE in October.
Yesterday, it was reported that Wellstream had allowed both GE and Varco – the largest US oilfield equipment supplier – access to confidential information as it tried to negotiate a higher offer.
US-based GE and Newcastle group Wellstream both declined to comment, while a Varco executive did not respond to calls.
Industry experts say any new bid would have to be pitched at between 775p and 800p a share.
GE chief executive Jeff Immelt, in Aberdeen recently to check on the progress of work being done in the Granite City by its oil and gas division, is in the middle of a drive to focus the company on its industrial operations.
Officials at the conglomerate have said they could plough more than £19billion into takeovers, each worth between £640million and nearly £2billion, over the next few years.
GE has also said it had lots of options for acquisitions and unveiled a £1.9billion agreement recently to buy Dresser, a maker of gas engines used in oil production and mining.
Houston-based Varco, which supplies the oil and gas industry from more than 700 manufacturing, sales and service centres worldwide, including Aberdeen, has a market capitalisation of about £16.5billion. With nearly £2billion in cash on its books, a takeover of Wellstream’s size “would essentially be bite-sized” for Varco, according to analysts at energy investment specialist Simmons and Company International.
Wellstream makes flexible pipes used by oil companies in deep water, an area poised for strong growth due to major finds in Brazil, where state-run Petrobras accounted for about 60% of the UK firm’s business in 2009.
The firm employs more than 850 staff worldwide.
It has been listed on the Stock Exchange since 2007 but spent much of its history under US ownership.