TGS-NOPEC initiates dispute resolution process in relation to mergerNews // December 11, 2007
TGS-NOPEC Geophysical Company has announced that it has formally initiated dispute resolution procedures in relation to its planned merger with Wavefield Inseis.
The procedures, which are detailed in section 20 of the merger plan
dated August 20th 2007, call for an initial 30 days negotiation period. If
the parties are unable to reach an amicable solution within the said time
period, arbitration proceedings in Oslo will be the next step.
TGS has initiated the procedures with the aim of closing the merger, as the current stagnation of the merger process is deemed unfortunate both for the merging parties, their employees and for their shareholders.
TGS has offered to have Wavefield Inseis meet with PriceWaterhouseCoopers to discuss their independent review of the events surrounding TGS' third quarter 2007 release.
However, Wavefield has repeatedly stopped short of saying it would support the agreed upon merger terms even if TGS' actions were upheld by the joint review conducted by the two companies or PwC's independent review.
"To date, we have not been made aware of any facts which draw into question any of TGS' actions related to this matter," said TGS-NOPEC. "While we are hopeful that Wavefield will reconsider its position during the 30 day negotiation period preceding arbitration and remain willing to work in good faith to resolve this matter, we are prepared to let the arbitration process address any disagreement with respect to the closing of the merger."
"We remain of the view that there is no legal or factual basis for terminating the approved and agreed merger," said the company.
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