Grey Wolf: Cash portion of merger consideration oversubscribed in deal with Precision Drilling

By Lisa Kerner

Charlotte, N.C., Dec. 22 - Grey Wolf, Inc. said preliminary merger consideration election results show that the cash merger consideration is oversubscribed in the company's proposed merger with Precision Drilling Trust.

The election deadline was Friday.

Grey Wolf shareholders who elected to receive all cash will receive a prorated amount of cash consideration and a fraction of a Precision trust unit for each share of Grey Wolf common stock, a Grey Wolf news release said.

Shareholders could elect to receive $9.02 in cash or 0.4225 Precision trust units per Grey Wolf share, subject to proration.

Precision Drilling, a Calgary, Alta., oil and gas drilling and exploration company, said it will pay a maximum of about $1.12 billion in cash and about 42 million Precision Drilling trust units.

The merger is expected to close following the special meeting of Grey Wolf shareholders on Tuesday.

Computershare Trust Co., NA is the exchange agent. The information agent is Georgeson Inc. (800 561-3540)

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

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