Proxy advisory firms support merger of Grey Wolf, Precision Drilling Trust

By Lisa Kerner

Charlotte, N.C., Nov. 14 - Grey Wolf, Inc. said RiskMetrics Group/ISS and Proxy Governance, Inc. recommended the company's shareholders vote in favor of Grey Wolf's acquisition by Precision Drilling Trust.

According to Grey Wolf, Risk Metrics noted that the proposed transaction "seems to have supported the Grey Wolf stock price as evidenced by the fact that Grey Wolf's stock price has declined significantly less that the average stock price decline of its peer group."

Proxy Governance cited the Grey Wolf board of directors' "active engagement in the process, as well as the use of an auction process to help maximize shareholder value," a Grey Wolf news release said.

Grey Wolf will hold a special meeting of shareholders on Dec. 9.

In August, Precision Drilling, a Calgary, Alta., oil and gas drilling and exploration company, agreed to acquire Grey Wolf in a deal that will give Grey Wolf shareholders $5 per share in cash plus 0.1883 newly issued Precision Drilling trust units.

Houston-based Grey Wolf is the fourth-largest provider of contract land drilling services in the United States.

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