August 22, 2017 / 11:18 AM / a year ago

Shares in CGG surge, traders cite Sinopec bid speculation

PARIS (Reuters) - Shares in oil services group CGG surged higher on Tuesday, with several traders citing speculation of a bid from China’s Sinopec.

A logo is seen on the manufacturer of geophysical equipment CGG (Compagnie Generale de Geophysique) building in Massy, near Paris, France, March 1, 2016. REUTERS/Christian Hartmann

Officials at CGG in Paris and at Sinopec in Beijing could not be immediately reached for comment.

Shares in CGG, which in June filed for bankruptcy as part of a restructuring to reduce its debt burden, were up 22 percent in mid-session trading, although the stock remains down by some 70 percent since the start of 2017.

CGG has debt in excess of $3 billion, and its proposed restructuring could be one of the biggest witnessed in France.

CGG, which specializes in geo-seismic surveys and is listed in Paris and New York, struggled to keep up with payments on its debt as the big oil groups that use its services proved reluctant to lift exploration spending during a period of low oil prices.

The company reported a second quarter net loss of $169.7 million last month.

Reporting by Sudip Kar-Gupta and Chen Aizhu in Beijing; Editing by Andrew Callus

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