The shareholders of Grey Wolf, Inc. (NYSE:GW) have overwhelmingly chosen to accept cash instead of stock in Precision Drilling Trust (NYSE:PDS) as consideration for Precision’s buyout of Grey Wolf. We’ve been following the story for some months now, but Grey Wolf shareholders approved the merger this morning and the deed is now done.
But for a lot less than everybody originally planned. Precision’soriginal offer was worth $9.02 in cash or 0.4225 of a Precision commonunit. The final deal for common units went down at $2.98. That’s whythe choice of cash was oversubscribed. Grey Wolf shareholders will getsome pro-rated portion of $5 cash/share of Grey Wolf stock and 0.1883of a Precision common unit.
If Grey Wolf shareholders had approved a July agreement with BasicEnergy Services, Inc. (NYSE:BAS), they wouldhave received better than $7.00 per share. Precision’s share price is offnearly 5% this morning, trading at around $6.80/share.
Paul Ausick
December 23, 2008
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
