Precision Drilling ( PDS) agreed to acquire fellow driller Grey Wolf ( GW) in a roughly $2 billion deal.

Under the terms of the agreement, Grey Wolf stockholders will receive $5 in cash and 0.1883 newly issued trust units for each of their shares. That equates to $1.12 billion in cash and 42 million units for the company.

Shares of Grey Wolf were recently down 11 cents at $8.48. Precision was off 5.2% at $20.25.

This article was written by a staff member of TheStreet.com.

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