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CE Franklin plans next move

by on April 17, 2012 2:18 am BST
 

Schlumberger sold piping and fitting distribution unit Wilson International to National Oilwell Varco earlier this month after announcing it was seeking buyers in March.

Both Wilson and a 56% stake in CE Franklin were acquired in Schlumberger’s $11.3 billion buyout of Smith International in 2010.

At the time of the sale to NOV, CE Franklin released a statement saying it was not part of the transaction and would continue to conduct business as usual.

“CE Franklin is not aware of any changes in Schlumberger’s previously announced intentions for its CE Franklin common shares,” it said at the time.

But the company today announced that its special committee, composed entirely of independent directors, had met with its broader board to consider its options.

“The board of directors and the special committee have decided it is in the best interest of CE Franklin and all shareholders to formally commence a strategic review process,” the company said.

CIBC World Markets would advise CE Franklin through the strategic review process, the company said.

As Upstream has previously reported, Schlumberger announced plans to “explore possible transactions” with its Franklin stake earlier this year.