I think the most likely buyer, at least until further news, is one of the two UK-based firms that were mentioned AMEC.L and PFC.L. They are both obviously interested, so it makes sense that one will eventually make the move and announce an offer. If GS can line up more suitors even better. For now we wait...but I'd say it will be a couple of months at the most before a formal bid emerges.
They have put themselves on the block . Some hedge funds may take a bite or even the Chinese. Being a Swiss company not sure the UK or US can say much. They have almost $500 MM in cash.
The action today seems to support a new bidder. So AMEC.L and now PFC.L And FLWT appears to be a good fit for both these suitors. I wonder what either firm would do with Power group though...
Now two companies denying they are interested in buying FWLT - I say where there's smoke, there's fire - and of course they're not going to admit anything until somebody make the first offer in public, they're both trying to avoid a bidding war.
Maybe they are not interested in the sense that they are not currently interested, because they already know they cannot make it happen at the moment. Though larger than foster and amex, petrofac has declined recently and its recent plunge decline may make the company unable to sensibly pay through stock. A deal today may cost 20% more than it could have this summer or fall.
16:52 EDT FWLT Source: Petrofac not interested in acquiring Foster Wheeler, Reuters says
A source familiar with the British oil services group Petrofac said the company is not interested in acquiring engineering company Foster Wheeler, says Reuters. Earlier in the day, Britain's Sunday Times reported tha Petrofac had entered the bidding to buy Foster Wheeler, setting up a possible bid battle against Amec, adds Reuters. Reference Link
Sentiment: Strong Buy
London Times or some Reuters source? My bet's on the Times.
@@@@@Engineers set for bid battle: PETROFAC has entered the race for Foster Wheeler, raising the prospect of a bid battle for the US-listed engineering conglomerate. The FTSE 100 oil services company pounced after the collapse of merger talks between Foster Wheeler and Amec, one of Petrofac’s biggest UK rivals. The pair could now find themselves in a tussle to buy Foster Wheeler, which is listed on the Nasdaq stock exchange and valued at $3bn (£1.8bn). It has 13,000 employees. All three are rivals in the global oil services industry, where they provide support to the exploration giants. Foster Wheeler has been bounced into play by the collapse of secret talks with Amec several months ago. Talks stalled over price. Foster Wheeler’s management decided to put it up for sale and instructed Goldman Sachs to conduct an auction.
@@@@@Reuters - British oil services group Petrofac (PFC.L) is not interested in acquiring Swiss-based engineering company Foster Wheeler (FWLT.O), a source familiar with the UK company said on Sunday. Britain's Sunday Times reported that FTSE 100 company Petrofac had entered the race to buy Foster Wheeler, setting up a possible bid battle against Britain's Amec (AMEC.L) for the $3 billion Nasdaq-listed company. Both Foster Wheeler and Petrofac declined to comment on the Sunday Times story. The Sunday Times also said in its story that Petrofac had in the past made a bid to buy Foster Wheeler's engineering arm for about $2 billion, an approach which was rejected. The source declined to comment on Petrofac's reported previous interest in Foster Wheeler's engineering business. Amec is looking at Foster Wheeler as one of a number of potential acquisition targets, but is not currently in talks with the company, a source told Reuters in November.
i agree....this stock COULD open at $60+ any coming Mondays !!!
Sentiment: Strong Buy
Foster Wheeler AG (FWLT) was a big mover last session, as the company saw its shares rise by over 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, trading at a volatile range of $26.60–$30.65 in the past one-month time frame, showed a pick-up on Wednesday at $30.49.
Foster Wheeler, which operates in engineering and construction, and power generating equipment business, has seen 5 positive revisions in the past one month. Also, the Zacks Consensus Estimate moved higher over the same time frame, suggesting that more solid trading could be ahead for Foster Wheeler. So make sure to keep an eye on this stock going forward to see if Wednesday’s gain can turn into more strength down the road.
Foster Wheeler currently has a Zacks Rank #3 (Hold) while its Earnings ESP is positive.
Sentiment: Strong Buy
The news that UK firm AMEC is looking at FWLT does appear to put the company in play. I went long FWLT yesterday via ITM 25 strike calls expiring Jan 2015.
It would try to go up and every time MM's would sell it down and accumulate. Now they are positioned big at 30.50. I wouldn't doubt a 1 dollar gap up in the morning or more then a move higher.