Chesapeake will make a cash tender offer to acquire Bronco for $11 a share, representing a 6% premium from Thursday's closing price of $10.40. The deal also is a 24% premium over Bronco Drilling's average 90-day closing price.
Chesapeake, in a statement Friday, said the acquisition will help it further its goal of owning about two-thirds of the rigs it operates in its drilling program.
Chesapeake plans to integrate Bronco Drilling's 22 rigs into its Nomac Drilling subsidiary.The deal is expected to close in the second quarter. -- Written by Joseph Woelfel
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