Wood Group is a likely takeover target?

Most analysts put a price on the part of 12pc gain on the fact the company succeeded in obtaining a price much better than expected for the division well-support – "nearly twice the price than many market practitioners thought that it would get," according to a securities broker.

Andrew Dobbing, JP Morgan Cazenove analyst also noted that "removal raises the competitive positioning of Wood Group" Don in their point of view "more focus and clearer market leadership in its other businesses."

Indeed, Wood Group will now only fully focus of "urban Sites contaminated brownfield production services", a service which consists to renew and maintain existing oil fields for production companies.

Still, there is a sense that persist among some analysts and traders by selling wells-support division, the company did itself a more tempting prospect for a purchaser of the whole group.

Even if a takeover is unlikely to short-term, traders to take into account that a bid on a large scale is possible over the next twelve months.

It is partly because consolidation is intensifying in oilfield services. GE, for example, a hoovered of several companies, including Wellstream listed in London. Wood, meanwhile, Group buys NHP almost billion $ last year.

Keith Morris, analyst of evolution, said: "carriers energy cashed-up see cyclical recovery extends over the next years, so it is better to buy now rather than later, when it will be too expensive."

So, who are likely buyers of group wood?

City notebooks take into account that the company would be an ideal candidate for potential merger to Amec.

The two companies have vigorously denied in the past that a merger is unlikely, but an analyst, said: "It is fair to say that through the sale of wells-support division, the company is now more attractive to Amec."

Energy & Utilities and positions vacant Oil & Gas jobs Telegraph

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