* Manager Magazin says Siemens mandates Lazard for deal
* Says Siemens would consider hostile bid
* Dresser-Rand shares jump to record high
(Adds Dresser-Rand shares, analyst comment, further details)
By Maria Sheahan
FRANKFURT, July 17 German engineering group
Siemens has been preparing an offer to acquire
U.S.-based compressor and turbine maker Dresser-Rand,
German magazine Manager Magazin reported on Thursday, citing
sources close to Siemens.
Siemens has been expanding in the United States and
announced plans to move its energy headquarter there to tap
booming demand for oil and gas equipment, as the U.S. power
industry switches to natural gas from coal.
Manager Magazin said Siemens Chief Executive Joe Kaeser had
mandated Lazard to put together an offer for Dresser-Rand, which
had a market value of $4.6 billion at Wednesday's closing price,
and would consider a hostile takeover if necessary.
Shares in Dresser-Rand jumped 19 percent to a record high of
$71.85 in early trade and traded at $69.85 at 1405 GMT.
Siemens and Lazard declined to comment on the report.
Dresser-Rand was not immediately available to comment.
An acquisition of Dresser-Rand would be Siemens's biggest
since it bought Dade Behring for $7 billion under Kaeser's
predecessor Peter Loescher in 2007, in a deal that was widely
criticised as overpriced.
According to Manager Magazin, then-CEO Loescher approached
Dresser-Rand about two years ago and was turned down by the U.S.
company's Chief Executive Vincent Volpe, but he did not give up
hope that a deal could be struck.
The magazine said his successor, Kaeser, put efforts to
prepare an offer for Dresser-Rand on hold while the German group
entered into a bidding war for peer Alstom's energy
assets, which ended last month as France chose General Electric
to form an alliance with Alstom.
Analysts said a takeover of Dresser-Rand would now be
relatively expensive, considering the company's stock had risen
by roughly a third over the past two years and trades about 20
times estimated 12-month forward earnings.
But some said it could still be worth the money for Siemens
following the failed Alstom offer.
"Strategically it would be a good fit, it would fill some
gaps in the portfolio and improve Siemens's position in North
America," Commerzbank analyst Ingo-Martin Schachel said.
Dresser-Rand makes compressors, turbines, rotators and other
equipment for oil and natural-gas producers and generates about
half of its sales with lucrative aftermarket parts and services.
It posted 2013 sales of $3.03 billion and had a net profit
of $168 million.
Siemens filled another gap earlier this year, buying small
gas-turbine assets from Rolls-Royce for 950 million euros
($1.3 billion). CEO Kaeser indicated at the time that expansion
in the United States was next on the agenda.
"When it comes to gas turbines... the United States is the
place to be. And all our routes in the U.S. lead to gas," Kaeser
told analysts during a conference call at the time. "That's not
only true for the gas turbines, that's also true with everything
which is along the process of fracking," he said.
Media reports have repeatedly flagged Siemens's possible
interest in Dresser-Rand and named Chart Industries,
Dril-Quip, Weatherford International and Tesco
Corp as other possible targets.
Shares in Siemens were down 0.7 percent at 93.62 euros by
1405 GMT, underperforming Germany's blue-chip index, which was
down 0.2 percent.
($1 = 0.7392 Euros)
(Additional reporting by Arno Schuetze and Sweta Singh; Editing
by Pravin Char and David Clarke)