** More shorts could be squeezed out as M&A buzz around OFScos hots up
** Some short covering has already been at work sinceannouncement of Halliburton /Baker Hughes deal &Technip's offer to buy CGG, analysts say
** Amec Foster Wheeler & Petrofac 3rd & 4thmost borrowed stocks on FTSE 100 respectively, Markit data shows
** Consolidation may help cos cope with collapsing oil pricewhich has hit exploration & production
** Nomura bearish on sector as global capex cycle set formulti-year decline; but key risk to this view is OFS cos becomeimmune to EPS downgrades as M&A expectations rise
** Advises investors looking to gain exposure to M&A to buya basket containing: Amec, Lamprell & Maire Tecnimont
** Broker considers it less likely that seismic marine &deepwater drilling sectors consolidate unless valuations aremeaningfully lower than current levels (RM: tricia.wright1.thomsonreuters.com@reuters.net)
