Baker Hughes talk led to rise of Subsea 7 shares

Shares in oilfield services firm Subsea 7 rose on Wednesday on an unconfirmed report it had been in talks with Baker Hughes about a possible takeover, but that the talks had now ended.

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 % at 1254 GMT on the report. They had been up 1.9  % 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 % of the shares, Kristian Siem, said 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