As previously disclosed by the Company on September 1, 2004, CGG made a conditional proposal to acquire PGS' geophysical business for USD 900 million, consisting of USD 800 million in cash and USD 100 million in newly issued shares of CGG common stock. The CGG proposal was subject to fulfillment of various conditions including, among other things, satisfactory completion of due diligence and financing arrangements.
Based on evaluations performed by PGS management and financial advisors, PGS' Board of Directors and management rejected the CGG proposal as inadequate in terms of price and other conditions. CGG did not revise its offer prior to withdrawing it.
PGS continues to believe in the potential benefits of seismic industry restructuring and will continue to pursue solutions to enhance profitability and value to PGS shareholders.
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Petroleum Geo-Services is a technologically focused oilfield service company principally involved in geophysical and floating production services. PGS provides a broad range of seismic- and reservoir services, including acquisition, processing, interpretation, and field evaluation. PGS owns and operates four floating production, storage and offloading units (FPSOs) and owns a small oil and gas company. PGS operates on a worldwide basis with headquarters in Oslo, Norway. For more information on Petroleum Geo-Services visit www.pgs.com.
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The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on various assumptions made by the Company which are beyond its control and certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.
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