Offshore Drillers Rise In Wake Of Ensco, Pride Deal |
| Wall Street Journal - Feb 7, 2011 |
Shares of offshore drillers Atwood Oceanics Inc. (ATW) and Rowan Cos Inc. (RDC), among others, jumped as Ensco PLC's (ESV) $7.3 billion deal for Pride International Inc. (PDE) lifted the sector's valuation and sparked debate as to who's next.
U.K.-based Ensco said Pride shareholders will receive a combination of stock and cash amounting to $41.60 per Pride share, or a 21% premium to Friday's closing price. The deal will create the second-largest offshore driller in the world after Transocean Ltd. (RIG, RIGN.VX).
Pride's shares surged 16% to $39.80 and helped lift shares of Atwood and Rowan.
Jefferies said in a note that although there are several smaller offshore drillers in the market, the two larger companies investors are likely to focus on as takeout targets are Atwood, due to its attractive newbuild pipeline, and Rowan, due to its high-spec jack-up fleet.
Read Full Article from Wall Street Journal
- Posted: 2011-02-07 22:34:41
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