Halliburton Bids for Expro International
Oilfield services company Halliburton Co. made a conditional bid of $3.36 billion for U.K.-based competitor Expro International Group PLC.
The all-cash bid of $30.14 per share tops the $28.36 per share offer made in April from a consortium led by Candover Partners Limited, valuing the company at $3.16 billion.
Halliburton said it considers Expro’s subsea and flow management sector to be an area of potential expansion. Expro focuses on services and products to measure and control the flow of oil and gas from wells.
“We believe that the current bid price of $3.36 billion makes the deal very attractive for Halliburton and that Halliburton will find the deal attractive even at a 10 percent to 15 percent premium to the current bid price,” said Calyon Securities analyst Mark Urness.
Urness thinks Candover may return with a higher bid.
“Which suitor wins out in this most interesting exchange could hold material implications for Expro customers,” said EnergyPoint Research managing Director Doug Sheridan. He thinks the Candover consortium could be a shorter-term owner focused on high returns and quick payback, where Halliburton would have a long-term, strategic interest in the company.
