Allis-Chalmers, Bronco Drilling shareholders to decide merger on Aug. 14

By Lisa Kerner

Charlotte, N.C., July 15 - Allis-Chalmers Energy Inc. and Bronco Drilling Co., Inc. will each hold a special meeting of stockholders on Aug. 14 to vote on the proposed merger of the two companies.

The companies previously announced June 30 as the record date for their respective meetings.

Allis-Chalmers stockholders will meet a 10 a.m. ET in Houston.

Bronco Drilling stockholders will meet at 10 a.m. ET in Duncan, Okla.

The boards of directors of both companies are recommending their shareholders vote in favor of the transaction, according to a form 424B3 filed with the Securities and Exchange Commission.

Under the June 1 amended merger agreement, Bronco Drilling stockholders will receive total consideration comprised of $200 million in cash and 16,846,500 shares of Allis-Chalmers common stock, or $18.25 per share, it was noted previously.

Allis-Chalmers originally agreed to acquire Bronco Drilling on Jan. 23 in a cash and stock deal valued at $437.8 million, or $16.33 per share, consisting of $280.0 million in cash and Allis-Chalmers common stock valued at $157.8 million.

Houston-based Allis-Chalmers provides services and equipment to oil and natural gas exploration and development companies.

Bronco Drilling, located in Edmond, Okla., provides contract land drilling and workover services to oil and gas exploration companies.

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