Shares in Compagnie Generale de Geophysique-Veritas SA, the oil surveyor created by the takeover of Veritas DGC Inc. by Geophysique SA, fell 3 percent, making them the fifth-biggest decliner in Europe.
Shares in CGGVeritas fell 4.5 euros to close at 147.4 euros in Paris. They were the fifth-biggest decliner on the Bloomberg European 500 Index, an index of the 500 companies with the biggest capitalization in Europe.
``The oil price at $50 is having a psychological impact,'' said Jean-Francois Granjon, an analyst with Oddo & Cie in Paris, who has a ``buy'' rating on the stock. ``Unless oil falls below $30 to $35, it won't have an impact for seismic companies.''
Oil prices slumped 3.4 percent yesterday after a government report showed U.S. oil inventories jumped 6.77 million barrels, the biggest gain since October 2004, because of higher imports. Futures touched $49.90, the lowest intraday price since May 25, 2005. Oil was trading at $51.33 in New York at 5:47 p.m. Paris time today.
Analysts also said investors could be selling shares in CGGVeritas now that the merger has been completed and they no longer want to own shares in the company.
CGGVeritas announced yesterday the final allocations of the merger. Stockholders of Veritas were offered a choice of CGGVeritas American Depositary Shares or cash for each of their shares.
The new company is the world's biggest surveyor of oil and gas fields.
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