October 11, 2017 / 1:39 PM / a year ago

Subsea 7 shares rise on report of Baker Hughes talks

OSLO (Reuters) - Shares in oilfield services firm Subsea 7 (SUBC.OL) rose on Wednesday on an unconfirmed report it had been in talks with Baker Hughes (BHGE.N) about a possible takeover, but that the talks had now ended.

FILE PHOTO - Traders work near where Baker Hughes is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. May 2, 2016. REUTERS/Brendan McDermid

A Wall Street Journal report, which quoted anonymous sources, said the discussions broke down over the price but could be revived.

Shares in Subsea 7 were up 6.6 percent at 1254 GMT on the report. They had been up 1.9 percent when the Oslo stock exchange imposed a matching halt at 1117 GMT.

Earlier the stock had been trading down following a note by Goldman Sachs cutting its rating on the stock.

“Subsea 7 ... is aware of today’s press speculation and subsequent share price movement. The Company has a policy not to comment on speculation or rumours,” it said in a statement.

The chairman of Subsea 7 and its top owner with 21.3 percent of the shares, Kristian Siem, told Reuters the firm would always comply with its duty to inform the market if there are material changes to the company.

“As a general comment, I can say that everybody in this industry talks and that may lead to rumours. But that does not mean the rumours are correct,” he said.

Subsea 7 CEO Jean Cahuzac declined to comment when contacted by Reuters.

Reporting by Gwladys Fouche; editing by Alexander Smith

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