GE Weighs Bid For Dresser-Rand: FT

(RTTNews) - Conglomerate General Electric Corp. (GE) has conducted discussions with oilfield equipment manufacturer Dresser-Rand Group Inc. (DRC) about a possible acquisition of the latter, the Financial Times reported.

The company is weighing whether to launch a bid, and it is unclear if GE will make an offer, the report added, citing people familiar with the matter.

If GE goes ahead with an offer, this could lead to a bidding war as German conglomerate Siemens AG (SIEGY, SMAWF) is also said to be looking to float a bid of $80 per share for the US machinery company.

The two companies had attempted to acquire the energy businesses of French speed train maker Alstom in June, and GE finally clinched the deal with its $16.9 billion bid.

Meanwhile, Swiss pump maker Sulzer AG (SULZF) had confirmed Wednesday that it is in non-exclusive discussions with Dresser-Rand about a potential stock-for-stock merger. Sulzer has a market capitalization of about $4.5 billion, while Dresser-Rand is a little larger with a market valuation of about $5.6 billion.

Houston-based Dresser-Rand, the maker of compressors and turbines for the oil and gas industry, had reportedly retained Morgan Stanley (MS) in August to assist in evaluating possible takeover bids.