Grey Wolf says 'no' to unsolicited offer from Precision Drilling

By Lisa Kerner

Charlotte, N.C., June 12 - The board of directors of Grey Wolf, Inc. determined that the unsolicited offer from Precision Drilling Trust is not superior to Grey Wolf's pending merger with Basic Energy Services, Inc.

In making its decision, the board said it received advice from the company's financial and legal advisers.

The agreement between Grey Wolf and Basic Energy remains in effect and has not been amended, a Grey Wolf news release stated.

As previously reported, Precision Drilling made an unsolicited proposal to acquire Grey Wolf for cash and Precision Drilling Trust units valued at $9.00 per share.

The agreement with Basic Energy Services 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.

Basic Energy Services shareholders will receive $6.70 in cash and 0.9195 of a share of new Grey Wolf for each share of Basic Energy Services 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 Services 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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