NEW YORK (TheStreet) -- Shares of Dresser-Rand Group Inc. (DRC) are higher by 12.21% to $81.95 at the start of trading on Friday, as the stock gets a boost from speculation Germany-based Siemens AG (SIEGY) is contemplating making a $6.5 billion bid for the company, Bloomberg Businessweek reports.
Dresser-Rand saw its stock rise on Wednesday and Thursday after the Swiss company Sulzer AG confirmed on its website that it was in talks with the company, a supplier of custom engineered rotating equipment for a variety of industries, regarding a possible merger.
In its statement Sulzer said there was no guarantee its talks with Dresser-Rand would result in a transaction.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Siemens is looking to make a competing offer for the company and could vote on whether or not to submit a formal bid of $85 per share at a meeting on September 24, sources told Businessweek.
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."