(Asker, Norway, January 11th 2008) Yesterday's extraordinary general meeting of Wavefield Inseis ASA ("Wavefield") does not change the agreed upon path forward for resolving any remaining disputes between Wavefield and TGS-NOPEC Geophysical ASA ("TGS"). The agreed merger plan cannot be cancelled without the consent of TGS. The merger plan states that any disagreements between the parties are to be resolved through a Norwegian arbitration panel of judges. TGS will honour the merger plan and continue the arbitration process to complete the merger as agreed.
TGS' position is that it has fulfilled its merger plan obligations and will prevail in the arbitration process. Therefore TGS will not consider increasing the exchange ratio. "Given our legal position, we will not be frustrated by Wavefield's efforts to extract extra value from TGS shareholders. To be clear, TGS will not ask its shareholders to compensate Wavefield for its negligence in understanding the risks it and its shareholders were undertaking when it signed the merger plan. TGS' earnings power is greater today than ever before," says Claus Kampmann Chairman of TGS.
The two parties have both again affirmed that the business rationale for the merger remains valid. However, the extraordinary general meeting in Wavefield was not the right arena for resolving outstanding disagreements between TGS and Wavefield. "We look forward to a full and fair hearing of our case in arbitration and are confident that Wavefield's allegations will be proven false" says Hank Hamilton, Chief Executive Officer of TGS.
For additional information about this news release please contact:
Arne Helland
Chief Financial Officer
Tel: +47 66 76 99 31/+47 91 88 78 29
Email: arne.helland@tgsnopec.no
The two parties have both again affirmed that the business rationale for the merger remains valid. However, the extraordinary general meeting in Wavefield was not the right arena for resolving outstanding disagreements between TGS and Wavefield. "We look forward to a full and fair hearing of our case in arbitration and are confident that Wavefield's allegations will be proven false" says Hank Hamilton, Chief Executive Officer of TGS.
For additional information about this news release please contact:
Arne Helland
Chief Financial Officer
Tel: +47 66 76 99 31/+47 91 88 78 29
Email: arne.helland@tgsnopec.no