Grey Wolf Spurns Precision Bid Again

Grey Wolf Spurns Precision Bid Again

Grey Wolf Inc., which drills oil and gas wells, rejected a third unsolicited takeover bid from Precision Drilling Trust, reaffirming its commitment to a previous agreement with Basic Energy Services Inc.

Grey Wolf said the Precision proposal undervalues the company and does not represent a significant premium to shareholders.

Grey Wolf also did not Precision refusal to increase its final offer of $10 per share.

Precision Drilling, a Canadian company, made its first bid to buy Grey Wolf for $9 per share earlier this month, and later raised the price to $9.30 per share. The latest offer of $10 per share valued the buyout at $1.79 billion, based on 178.8 million Grey Wolf shares outstanding as of April 30.

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