Crown Prince receives calls from British PM and French President    Saudi, U.S. foreign ministers discuss strategic ties and regional developments in Washington    Al-Jadaan: Arab countries must measure the impact of increasing financial pressures    Saudi Arabia to resume direct flights to Syria soon    Flights and ferries suspended across Greece as unions call 24-hour general strike    Saudi Arabia's Industrial Production Index down 0.2% in February    AlUla joins IMD World Smart Cities Index 2025    Riyadh's Malham Airport designated for general aviation operations    El Salvador says it shares gang intel with the US    Israeli soldiers reveal systematic destruction to create Gaza buffer zone    US-China rivalry over Panama Canal sparks tensions, leaving Panama caught in war of words    Macron announces potential recognition of Palestinian state in coming months    Sabiri strike gives Al Taawoun narrow first-leg win over Sharjah in ACL Two semi-final    Douglas Gauthier appointed CEO of the Royal Arts Complex in Riyadh's King Salman Park    King Abdulaziz Library unveils 400 rare Qur'an manuscripts    Nightclub collapse kills 79 in Dominican Republic's capital    Woman becomes first in UK to give birth after womb transplant    Women make up 20% of e-sports players in Saudi Arabia    Pakistani star's Bollywood return excites fans and riles far right    Saudi U-17s qualify for 2025 FIFA World Cup after win over Thailand    Benzema rescues Al Ittihad with stoppage-time equalizer in thrilling Jeddah Derby    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Precision Drilling to buy Grey Wolf for $2b
Published in The Saudi Gazette on 26 - 08 - 2008

Precision Drilling Trust, Canada's largest oilfield-services provider, agreed to buy Grey Wolf Inc. for about $2 billion to add drilling in the larger and stronger US market.
Stockholders of Grey Wolf, based in Houston, will get $5 and 0.1883 trust unit per share, the companies said today in a statement. That's $9 a share at the Aug. 22 closing price, a premium of 4.8 percent and less than a June bid of $10 a share, which Grey Wolf spurned.
Acquisitions of oilfield-services providers and drillers accelerated this year as record oil prices raised demand for rigs and support equipment. Grey Wolf rejected three previous bids from Calgary-based Precision in favor of its April agreement to acquire Basic Energy Services Inc., a Midland, Texas-based oilfield contractor. Shareholders voted that deal down in July.
Precision will gain 121 rigs, mostly drilling for natural gas in the US, where those in operation have risen 13 percent this year to a record 1,998, according to weekly counts by Baker Hughes Inc. Canadian rigs have fallen 13 percent since a high of 457 were operating in February.
“It will provide a nice platform for expansion, particularly further into Mexico, because in North American drilling, size and scope matter,'' said Jud Bailey, an analyst for Jefferies & Co. in Houston who rates Grey Wolf shares at “buy'' and owns none. “But the premium is underwhelming. This is clearly an inferior offer.''
Grey Wolf shareholders opened the door to Precision by rejecting in July management's plan to buy Basic Energy Services for $1.4 billion. Precision Chief Executive Officer Kevin Neveu said then he would immediately revive his offer to buy Grey Wolf.
Since then, natural-gas prices have tumbled, dragging down the value of Precision's trust units by 12 percent.
Grey Wolf has dropped 11 percent from a high of $9.50 a share on June 23. Precision said today it will issue about 42 million new units to Grey Wolf shareholders, 4.5 percent more than in the June offer.
Precision is getting Grey Wolf cheaply “because there were no other takers,'' Bailey said.
Grey Wolf shareholders will own 25 percent of the combined company and three of its directors will join the Precision board at closing. A vote of Grey Wolf shareholders on the deal will be held by year-end, the companies said.
Deutsche Bank AG and Royal Bank of Canada are advising Precision Drilling on the transaction. Its lawyers are Mayer Brown LLP, Bennett Jones LLP, and Felesky Flynn LLP.
UBS AG is advising Grey Wolf, as did law firms Porter & Hedges LLP, Blake, Cassels & Graydon LLP, and Gardere Wynne Sewell LLP.
Gas futures on the New York Mercantile Exchange have dropped 43 percent from the 30-month high reached on July 2.
The announcement was made before the start of regular trading in North American markets. Precision Drilling dropped 3.3 percent to C$21.50 in pre-market trading in Toronto.
Grey Wolf was little changed at $8.60 on the New York Stock Exchange.


Clic here to read the story from its source.