Siemens AG is preparing to offer more than $6.5 billion for Dresser-Rand Group Inc. (NYSE: DRC), as Europe’s largest engineering company looks to scupper a competing plan by Sulzer AG, to merge with the U.S. oil-and gas-equipment maker, according to people familiar with the plan, Bloomberg said Sept. 19.
Siemens’s supervisory board might vote on whether to submit a formal bid of more than $85 a share at a Sept. 24 meeting, said one of the people, who asked not to be named as the matter is not public. Dresser-Rand shares closed at $73.03 on Sept. 18. A Siemens spokesman declined to comment.
The Munich, Germany-based company has coveted Dresser-Rand, which makes compressors and turbines for the oil and gas industry, for at least three years. CEO Joe Kaeser is seeking more deals in that industry after saying that Siemens hadn’t made the most of the boom in shale gas extracted by hydraulic fracturing.
Dresser-Rand is working with Morgan Stanley (NYSE: MS) to prepare for possible takeover bids from companies including Siemens, people with knowledge of the matter said last month. Sulzer said this week it is in talks with Dresser-Rand about a potential merger. A bid by Siemens would pitch the German company against its former CEO Peter Loescher, who is now chairman of Sulzer. Manager Magazin reported earlier Sept. 19 that Siemens might offer more than $6 billion.
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