GE Wellstream rejects $1.2bn approach

General Electric, confirming itself as the mystery bidder, said on Wednesday it made a proposal at 750 pence per share in cash, substantially less than the current value of Wellstream's shares which closed at 780 pence on Tuesday.

"GE is disciplined in its acquisitions, and as such, there can be no certainty that it will take any further action," said the suitor in a statement.

Wellstream makes flexible pipes used by oil companies in deep water and has a manufacturing facility in Brazil which is seen as a key attraction for potential buyers as the country is keen for locally produced materials to be used in extracting its billions of barrels of oil reserves.

Shares in Wellstream have risen 28 per cent to their highest level for two years since the company said in September it had received several bid approaches.