Report: Dresser-Rand Group Inc. Hinders Siemens AG's Integration Plan

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Dresser-Rand Group Inc.
DRC
shares fell 2 percent Thursday after a skeptical article appeared in a German magazine concerning its pending $7.6 billion acquisition by Siemens AG
SIEGY
. http://www.manager-magazin.de/unternehmen/industrie/siemens-zukauf-dresser-rand-sperrt-sich-gegen-integration-a-1024471.html Manager Magazine said Thursday that Siemens has met resistance from Dresser managers in formulating integration plans leading up to the merger. The report cited unnamed sources. Dresser-Rand expects the deal, unveiled in September, will close by this summer, although European Union antitrust regulators recently extended their deadline to rule on the merger to July 14. Dresser-Rand, which supplies oilfield equipment, recently said it will cut its workforce by 8 percent in a move it said is "not a result or in anticipation" of the Siemens merger. "It's in response to the expected activity levels present in the marketplace," Dresser-Rand said. The extended EU antitrust investigation of the will add $200 million to the merger's cost according to the magazine report. Dresser Rand last month said its recent fourth quarter included pretax merger costs of $5 million. Dresser changed hands recently at $79.10, down $1.50. a German magazine published rueful comments of Siemens executives
Posted In: NewsRumorsM&A
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