Precision Drilling to Buy Grey Wolf: Reports
Under the deal, Precision Drilling, an oil and natural-gas driller, will pay $5 cash and 0.188 Precision shares for every Grey Wolf share, according to a report Sunday on The Wall Street Journal's Web site. An anonymous source close to the matter said the boards of both companies had agreed to the deal, the report added. If the deal is consummated, Grey Wolf shareholders will own about 25% of the combined company, according to the report.
Later Sunday, Reuters, also citing an anonymous source, reported that Precision Drilling had agreed to buy Grey Wolf for the terms mentioned by the Journal.
The news comes only weeks after Grey Wolf's shareholders rejected a merger with Basic Energy Services (BAS), the Journal report noted.Precision's offer comes as no surprise, as the company had already made multiple unsolicited offers for Grey Wolf and had promised to come back with an offer if Basic's bid was voted down, the Journal reported. Grey Wolf shares gained 11 cents Friday to close at $8.59. Precision Drilling shares lost 70 cents to end the session at $21.35.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV