(Reuters) -British oilfield services and engineering firm Wood Group has agreed to extend a deadline for talks with Dubai-based Sidara for a possible takeover offer after a failed attempt six months ago, the Financial Times reported on Sunday.
The extension would allow time for the results of an independent review of Wood’s projects division by Deloitte, the report said, citing people familiar with the matter.
Wood Group declined to comment on the report and Sidara did not immediately respond to a Reuters request for comment.
Under UK regulations, Sidara faces a Monday afternoon deadline to make a firm offer or walk away unless the two sides agree on an extension, FT added.
Last month, the two parties re-entered negotiations for a possible Sidara takeover of Wood after Sidara previously walked away from its plan to buy Wood last year, citing rising geopolitical risks and uncertainty in the financial market.
Wood Group has forecast negative cash flow for another year and saw its CFO step down last month following a tumultuous past few years of activist investor pressure to consider a sale, two unsuccessful takeover proposals and a review of its financials.
Shares of Wood Group have lost more than 40% of their value since the start of the year.
Its market cap has fallen to little over 265 million pounds ($342.33 million).
($1 = 0.7741 pounds)
(Reporting by Kanjyik Ghosh; Editing by Louise Heavens)
