NEW YORK (TheStreet) -- Shares of Dresser-Rand Group Inc. (DRC) are higher by 7.45% to $72.94 on heavy volume in early afternoon trading on Wednesday, after Swiss company Sulzer AG confirmed in a statement on its website that it is "engaged in non-exclusive discussions with Dresser-Rand regarding a potential transaction."
Dresser-Rand is a global supplier of custom-engineered equipment for critical applications in the oil, gas, chemical, and other industries. Sulzer is a company involved in the machinery and equipment production sector.
"There can be no assurance that a transaction will result from these discussions," Sulzer continued, stating it would make no further comment "unless and until an agreement is reached."STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The statement was in response to speculation by a Swiss newspaper suggesting the two companies would announce a deal in October, Bloomberg reports.
Separately, 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 some important positives, 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, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."