European oil services player Technip has agreed to acquire offshore construction and engineering company Global Industries (NASDAQ:GLBL) for $8 per share in cash, a 92% premium to Global's average closing price for the 30 days ending September 9.
Including debt, the transaction values Global Industries at $1.07 billion.
Technip said it gains Global's complementary subsea business, supported by 14 vessels, and important geographic positions.
The transaction is expected to be completed in early 2012.
Also in the energy sector today, Tudor Pickering Holt initiated covered on a slew of energy companies today.
The firm rated Hess (NYSE:HES), Petrobras (NYSE:PBR) and Total (NYSE:TOT) a "buy."
Tudor Pickering gave Royal Dutch Shell (RDSa), Chevron (NYSE:CVX) and BP (NYSE:BP) "accumulate" ratings.
And it gave "hold" ratings to Statoil (NYSE:STO), ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM).
The iShares Dow Jones U.S. Energy Sector Index Fund (NYSE:IYE), trading down 1% Monday.
The Energy Select Sector SPDR Fund (SLE) is trading down .5%, and the Vanguard Energy ETF (NYSE:VDE) is trading down over 1.2%.
Oil is trading around $87 a barrel Monday, leading the DB Oil Fund (NYSE:DBO) to trade down about .8%.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.