Technip rules out CGG bid after talks fail
Technip said in a statement it had put forward "a number of alternative options to a tender offer" in discussions with CGG but failed to reach a deal.
"Under these circumstances, Technip informs the market that it does not intend to file a tender offer for CGG," the company said.
CGG had previously rebuffed a 1.47 billion euro ($1.82 billion) takeover offer from Technip in November.
In a statement on Sunday, CGG said it had "remained open to dialogue and studied all proposals" since the emergence of Technip's unsolicited approach but that "the board of CGG considered that none of the proposed options were creating value for the company". "CGG is in a position to weather current difficult market conditions," it added.
Its shares tumbled on Thursday and Friday following a report that the French government had doubts about a Technip tie-up. The stock ended the week at 6.91 euros, down almost 15 percent on Wednesday's close.
The French firm is seeking to broaden the range of services it can offer as oil company clients slash spending in response to a 40 percent drop in the price of oil since June.
The government's blessing was seen as key to any deal because state-owned investment fund BPIFrance owns 7 percent of CGG and 5.2 percent of Technip.