Dresser-Rand Group Inc. (DRC:US) rose the most in more than five years in New York trading after Germany’s Manager Magazin reported Siemens AG (SIE) is preparing an offer for the oilfield-equipment maker.
Dresser-Rand climbed as much as 19 percent to $71.91, and the stock traded 13 percent higher at $68.18 as of 10:54 a.m. Munich-based Siemens has been preparing a possible takeover for many months, the publication reported today.
After a failed bid to acquire Alstom SA (ALO)’s gas turbines business, Siemens has “huge” firepower to pursue deals intended to capitalize on the boom in natural gas extracted from hydraulic fracturing, Chief Executive Officer Joe Kaeser said in a July 2 interview. The company has been evaluating a bid for Dresser-Rand since at least 2011, with Lazard Ltd. as an adviser, people familiar with the discussions said last year.
Siemens spokesman Alexander Becker declined to comment. Blaise Derrico, a spokesman at Dresser-Rand, didn’t immediately return phone and e-mail messages seeking comment.
Siemens’s $1.3 billion purchase of most of Rolls-Royce Plc (RR/)’s energy assets in May plugs the same technology gap for turbines and compressors used in gas extraction that Dresser-Rand would offer, according to analysts including Commerzbank’s Ingo-Martin Schachel.
Siemens traded 1 percent lower at 93.37 euros as of 5:13 p.m. in Frankfurt.
Dresser-Rand is not viewed as a “motivated” seller now, J. David Anderson, an analyst at JPMorgan Chase & Co. (JPM:US) said today in a note to investors.
“A hostile takeover is not impossible given recent industrial acquisitions in the oil and gas space,” Anderson said.
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