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Precision Drilling to buy Grey Wolf

August 26, 2008|From the Associated Press

Canada's Precision Drilling Trust will buy oil and natural gas driller Grey Wolf Inc. in a cash-and-stock deal worth more than $2 billion, the companies said Monday, apparently ending an extended fight for control of the Houston firm.

Grey Wolf shareholders had previously spurned a rival offer from Basic Energy Services Inc., a well site services company, as well as two earlier takeover offers from Calgary, Canada-based Precision.

Under the new agreement, Precision will pay $1.12 billion in cash and 42 million shares valued at $896.7 million, based on Friday's closing stock price.

Precision's U.S.-traded shares fell $1.17, or 5.5%, to $20.18. Grey Wolf shares fell 11 cents to $8.48.

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