News

Bouygues Offshore announces that Saipem, an Eni company, has completed the acquisition of Bouygues Construction's 50.8% stake in Bouygues Offshore and that it has filed with the French market authorities a standing offer ("garantie de cours") for the remaining shares held by the public.

The cash offer price of Euro 60.08 per share, has been unanimously recommended by the Board of Directors of Bouygues Offshore and it is equal to the price paid to Bouygues Construction for the acquisition of the majority stake. This offer price represents an approximately 25% premium over Bouygues Offshore's one-month average share price prior to the announcement of Saipem's deal with Bouygues Construction and values 100% of Bouygues Offshore at approximately EUR 1 billion.

This transaction, which last week received antitrust clearance from the European commission, represents the largest cross-border acquisition in Europe in the oilfield services sector. The combination of Saipem's recognised construction capabilities and Bouygues Offshore's powerful engineering and project management expertise will create a new, truly worldwide group with a superior competitive positioning in the provision of EPIC services to the oil industry.

The integration of Saipem and Bouygues Offshore will be facilitated by seven years of successful cooperation through the SaiBos joint venture, joint projects, and and other projects performed jointly.

Pietro Franco Tali, Chairman and CEO of Saipem, commenting on the deal, said: "We are confident that Bouygues Offshore shareholders will react positively to this offer, which is a full and fair one. We are excited about the prospect of combining and developing further the expertise of the two groups to create a worldwide leader in the provision of services to the oil industry."

Herve Le Bouc, Chairman of Bouygues Offshore, said: "We are convinced that there is a strong industrial logic behind this transaction and that the offer is in the best interests of Bouygues Offshore, its shareholders, its employees and its customers."

The French standing offer is limited to non-U.S. holders of shares. As the shares of Bouygues Offshore are also listed on the New York Stock Exchange (in the form of ADSs), Saipem currently intends to launch a separate tender offer in the United States, open only to holders of shares resident in the United States and all holders of ADSs, concurrent with the French standing offer. Both offers are expected to commence in the second half of July, following approvals from the French market authorities, and will remain open for twenty business days.

Saipem is being advised by Morgan Stanley & Co. Limited and by Cleary Gottlieb Steen & Hamilton.

Source: Rigzone

*Coflexip Stena Offshore* has been awarded two contracts by Shell Expro worth nearly £12million for work o the Penguis and Guillemot developments in the UK sector of the North Sea.

The Penguins contract, worth approximately £9million, includes the installation of all umbilicals and risers for the first phase of the field's development. The Guillemot contract worth in excess of £2million includes the laying of a single pipeline which will connect the Anasuria floating production vessel to the field's subsea well.

Penguins is the North Sea's longest multi-phase subsea tie-back development and offshore development work started in May. There is a target of first oil for the end of this year. The Guillemot contract will commence later this month.

CSOL managing director Ian Stevenson said: "We are delighted to be working with Shell again on two of its most important developments for 2002, Penguins and Guillemot. We look forward to working with the group and helping to bring both developments onstream safely and efficiently."

Source: Rigzone

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