Updated with analyst interview and oil prices starting in 10th paragraph.
NEW ORLEANS (TheStreet) -- Superior Energy Services' (SPN) $2.6 billion cash and stock offer to purchase Complete Production Services (CPX) for a 60% premium killed the acquirer's stock on Monday as investors fretted over possible dilution and a hefty premium paid.
Superior Energy shares closed down more than 13% at $3.78 with volume reaching 22.75 million, well beyond the issue's trailing three-month daily average of 1.04 million.
But investors aren't making the correct call, says Trey Stolz, a managing director of research at Iberia Capital Partners. Stolz argues that a panicked market may be overlooking the fact that though the deal will double Superior's outstanding shares, it will also more than double Superior's earnings streams.
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