In a blow to mild mergermania, the board of survey outfit TGS-Nopec today recommend shareholders drop a longstanding merger attempt with rival Wavefield Inseis despite the merger-candidate’s record earnings report Tuesday.

“The Board” recommened the “termination of the company’s merger proces with Wavefield Inseis and to seek compensation limited upwards to $700 million,” a statement said.

Wavefield’s board on Tuesday recommended its shareholders accept what was believed to be a revised TGS merger offer with certain conditions. But not so, apparently.

“During the past 12 months, TGS-NOPEC has worked diligently to make the merger with a success,” a statement said before alleging, “In contrast, Wavefield has consistently objected to completing the agreed and approved merger since October 2007, and has required improvements in the favour of Wavefield shareholders as conditions to complete the merger.”

TGS was said to offering a better share-exchange ratio, but instead warned in a press release of value-destruction under a new merger deal.

"We expect the next two to three years to present the most favourable market conditions we have ever experienced for our products and services,” the company said, before adding the $700 million “compensation claim” would now become “the principal claim”.

ws@scandoil.com

Tags: TGS-NOPEC Geophysical Company, Wavefield InSeis ASA