NEW YORK (TheStreet) -- Shares of Dresser-Rand Group Inc. (DRC) are slightly lower on heavy trade volume after it was reported that the maker of oilfield equipment is working with Morgan Stanley (MS) to prepare for possible takeover bids from companies, including Siemens (SIEGY), sources told Bloomberg.
While Dresser-Rand isn't actively pursuing a sale, the company retained the financial adviser after potential suitors expressed interest, sources added.
Siemens has been considering a bid for some time and Switzerland-based Sulzer also previously discussed a potential merger with the company, sources said.
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TheStreet Ratings team rates DRESSER-RAND GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DRESSER-RAND GROUP INC (DRC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: