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TGS demands $700m for failed merger



By Upstream staff 

Norwegian seismic player TGS-Nopec said today it reserved the right to seek $700 million in compensation from peer Wavefield Inseis for walking away from a planned merger of the two companies.

Wavefield called off the merger last year after a TGS profit warning hit the value of the all-stock deal.

"TGS has loyally honoured the merger plan and emphasises that all conditions are fulfilled," TGS-Nopec said in a statement, adding that it had asked arbitrators to enforce the merger.

"TGS reserves the right to seek compensation, estimated at approximately $700 million, from Wavefield for the merger plan violation," TGS-Nopec said in a statement.

TGS said that the merger plan stated that any disagreement between the parties should be resolved through arbitration.

TGS added it has filed a writ against Wavefield, demanding that the pair's merger is completed.

"Consequently, TGS ask the arbitration panel to instruct the board of directors in Wavefield to complete the merger," said TGS-Nopec boss Hank Hamilton said.

Both companies have agreed upon the composition of the arbitration panel.

It will consist of Harald Arnkvaern, partner in the Haavind Vislie law firm, Gunnar Aasland, a former Supreme Court judge, and Georg Scheel, managing director of Nordisk Defence Club.

The arbitration hearing is scheduled to take place between 9 September and 24 September.


Tuesday, 22 April, 2008, 11:47 GMT  | last updated: Tuesday, 22 April, 2008, 11:48 GMT

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