Grey Wolf turns down Precision Drillings' third unsolicited offer

By Lisa Kerner

Charlotte, N.C., June 27 - Grey Wolf, Inc.'s board of directors rejected the third unsolicited proposal from Precision Drilling Trust to acquire the company.

According to a Grey Wolf news release, the proposal is not reasonably likely to result in a proposal superior to its pending strategic merger with Basic Energy Services, Inc.

Precision Drilling offered to acquire Grey Wolf for $10.00 per share in cash and trust units.

The board continues to recommend Grey Wolf stockholders vote to approve the pending merger agreement with Basic Energy Services at the special meeting on July 15.

Grey Wolf said it believes, based on its effort to seek clarification of Precision Drilling's proposal, that the third offer was Precision Drilling's final, non-negotiable offer.

In making its decision, the board said it considered Precision Drilling's refusal to increase its offer.

Previously, Grey Wolf rejected two prior offers from Precision Drilling, one for $9.00 per share and one for $9.30 per share.

The agreement with Basic Energy calls for Grey Wolf shareholders to receive $1.82 in cash and 0.25 of a share of new Grey Wolf common stock for each share of Grey Wolf they currently own or, based on the exchange ratio, one share of new Grey Wolf for each four shares of Grey Wolf held in addition to the cash consideration, it was previously reported.

Basic Energy shareholders will receive $6.70 in cash and 0.9195 of a share of new Grey Wolf for each share of Basic Energy they currently own, it was already noted.

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

Basic Energy is the third-largest well servicing rig contractor in the United States. The company is located in Midland, Texas.

Precision Drilling is a Calgary, Alta., oil and gas drilling and exploration company.

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