Wood Group, UK's Wood Group, re-enters into takeover negotiations with Dubai's Sidara

Wood Group, a British company, said Monday that it had received a new approach from Sidara regarding a potential takeover offer. The Dubai-based group previously failed to purchase the struggling oilfield engineering and services firm six months earlier.

The Financial Times reported that the company was reopening talks. Shares of the London-listed firm soared by more than 34%.

The FT reported that Sidara has a new approach after the recent collapse of Wood Group shares. Two people who were close to the discussion said this.

Since the beginning of the year, Wood Group shares have lost over 60% of their value.

Wood Group has forecast negative cash flow in its next year. Its CFO resigned earlier this month after a turbulent few years that saw activist investors pressuring the company to consider a possible sale, two failed takeover proposals and an audit of its finances.

The report said that Sidara wanted to act quickly to retain Wood's senior and middle-ranking staff, who were angry at the company's situation and its decision of cutting bonuses. It cited people familiar with the talks.

Wood's statement of Monday did not disclose the financial terms of a potential offer.

The shares of the London listed company rose 34.2% to 35.44 pence at 1357 GMT after falling more than 85% in value since Sidara withdrew from the discussion, citing increased geopolitical risk and uncertainty on the financial markets.

Sidara didn't immediately respond to our request for comment. Reporting by Yamini Kalya and Radhika Ailkumar from Bengaluru, Editing by Vijay Kishore & Tasim Zahid

(source: Reuters)