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  • astral_tsar astral_tsar • Feb 4, 2009 3:39 PM Flag

    Deal Aftermath

    I don't know whether anybody was following the acquisition of Grey Wolf by Precision Drilling. The deal did close, and PDS is down by 50% or so now to $4.

    They used to earn $2 or $3 a year, so this share price looks to me like a bet that the debt from the acquisition drives Precision out of business. Any opinions on that?

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    • pmlljl pmlljl • Feb 4, 2009 5:13 PM Flag

      astral:

      I have not followed either company, but I would think that the crash in the price of oil has had to hurt anybody in the drilling business. When the price goes from $147 to $40 the oil developers are not going to be nearly as interested in drilling for oil. I would imagine that this situation would only make it a worse time to acquire another business in that field.

 
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