Last week, oil and gas servicer Precision Drilling Trust
But now Precision and Grey Wolf have officially entered hostile territory. Grey Wolf rejected the Canadian driller's advances via a public statement two days after the bid was publicly disclosed. We now know that Precision followed up with a second, higher offer over the weekend. I should probably say marginally higher -- the offer price was only hiked a bit more than 3%, though the cash/share mix was also tilted a bit.
While I appreciate Precision's reluctance to throw its shares around, this is no way to torpedo a tie-up. That incremental offer was rejected right quick. Precision is going to have to pony up if it wants to partner up.
Back when I covered Yamana Gold's
Over the next week or two, we'll learn just how committed Precision is to its speedy southerly expansion.
Precision is rated five out of five stars in Motley Fool CAPS, but it's not among your fellow Fools' top five oilfield service companies. That list is right here.
Related Foolishness:
- This deal's part of the new direction in energy M&A.
- Precision recently called a bottom in the onshore drilling market.
- There's no reason to be sheepish about Grey Wolf.