Wood Group extends Sidara 'put up or shut up' deadline

(Sharecast News) - Wood Group said on Monday that the deadline by which Dubai's Sidara must either announce a formal intention to make an offer for the company or walk away has been extended. Under UK takeover rules, Sidara had until 24 March but this has now been pushed back to 17 April, at the request of Wood Group.

The oilfield services and engineering company confirmed on 24 February that it had received a non-binding, conditional proposal from Sidara about a potential cash offer.

"Following this, Wood provided Sidara with access to due diligence information and entered into discussions with Sidara," it said on Monday.

Wood said discussions are continuing and the board of Wood has therefore requested an extension to the 'put up or shut up' deadline.

The company said a further announcement will be made in due course, adding that there can no certainty that an offer will be made, nor as to the terms on which it will be made.

At 0935 GMT, the shares were up 2% at 39.16p.

Russ Mould, investment director at AJ Bell, said: "Investors continue to keep their fingers crossed that Wood Group will be acquired for a premium.

"The bearer of much bad news in recent months, Wood Group's share price has been like a slinky slowly dropping down the stairs.

"That hasn't stopped certain opportunistic investors from betting on the company being taken private at a higher price than its shares currently trade."