CGG: Shares rally for second day in row, traders cite bid speculation




Shares in oil services group CGG surge for second day in a row, with traders citing ongoing bid speculation as being behind the stock’s rally.

CGG shares up 15 pct by mid-session trading in solid volumes – stock closed up 14 pct on Aug. 22 after market talk of a bid from China’s Sinopec

CGG spokeswoman says company has no comment to make on the bid speculation

One trader notes that Sinopec’s BGP division could benefit from takeover of CGG, but adds that French government would be unwilling to see CGG’s expertise and technology fall into Chinese hands

French state’s Bpifrance investment body owns around 9 pct of CGG shares, according to Reuters data

CGG stock still down some 70 pct since start of 2017

CGG filed for bankruptcy in France and United States in June as part of restructuring to ease debt burden

CGG has debts of more than $3 bln, while stock market capitalisation stands at around 70 mln euros




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