CGG SA Soars On Buyout Rumor

CGG SA (ADR) CGG shares soared Wednesday afternoon on a report that the French oilfield services company may be acquired.

Citing unnamed sources, Bloomberg said CGG had turned down an initial offer from Technip TKPPY and is in talks for a sweeter deal.

CGG gained 23 percent and closed Wednesday at $10.55.

Bloomberg said the French government holds stakes in both companies and has pushed for a merger.

CGG, with a market capitalization of $1.94 billion, provides seismic data for oil and gas exploration both offshore and on land. Its ADRs are down nearly 40 percent year-to-date as energy prices have fallen.

Technip, with a market cap of $8.8 billion, provides engineering and project management services to oil and gas producers. Technip fell 1 percent in U.S. over-the-counter trading.