General Electric is paying $1.3bn for British pipeline-builder Wellstream, in a move to increase its exposure to Brazil’s oil industry. GE’s oil and gas arm already works alongside Brazil’s state-controlled giant Petrobras, the company that provides much of Wellstream’s revenues; now it can access Wellstream’s know-how and contracts, for a price moderately below what Wellstream was demanding.
The full FT story is here. But for investors, the deal holds three important lessons.
At last — some de-equitisation.
From RNS on Tuesday:
The Board of Wellstream has noted the movement in its share price and confirms that it has received a number of preliminary approaches regarding a possible offer for the Company.
There can be no certainty that an acceptable offer will ultimately be made. A further announcement will be made in due course.
So who might these suitors be?
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