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Schlumberger has 41 pct in Eastern Echo after bid
OSLO (Reuters) - U.S. oilfield services group Schlumberger (SLB.N) said on Tuesday it has control of 41 percent in Eastern Echo ECHO.OL, including convertible bonds, after a public buyout bid for the Norwegian seismic group.
Schlumberger offered 12 crowns per Eastern Echo share but its unsolicited $679 million bid was stymied by a rejection from Eastern's board and French rival CGGVeritas' CEPH.PA (CGV.N) purchase of a 12.7 percent stake at a higher price.
Last Wednesday, Schlumberger said it already controlled 40 percent of Eastern Echo, meaning that it bought few shares over the rest of the offer period, which was extended until Monday.
Schlumberger said it will control about 37 percent of Eastern shares and about 90 percent of its convertible bonds, which the U.S. group said it would have the right to convert in the event of a change of control in Eastern.
"In the event that a change of control occurs and Schlumberger elects to convert all the convertible bonds held by it, Schlumberger will control 41 percent of the Eastern shares on a fully diluted basis," Schlumberger said in a statement.
Schlumberger was not immediately available for further comment. Shares in Eastern Echo have not yet traded on Tuesday after closing on Monday at 14.00 crowns.
(Reporting by Wojciech Moskwa; Editing by David Cowell)
