Canada's Precision Drilling Trust Buys Grey Wolf For $2 Billion

August 25, 2008 11:51 a.m. EST

Houston, TX (AHN) - Grey Wolf signed an agreement Monday that agreed to sell for $2 billion the Houston-based firm to Precision Drilling Trust, Canada's largest oilfield service provider.

With the change of owners, Grey Wolf stockholders would get $5 and a 0.188 trust unit per stock from Precision Drilling, based in Calgary. Grey Wolf had previously turned down Precision's higher bid in June of $10 per share.

The Texas firm reconsidered Precision's offer after stockholders rejected a management plan to purchase Basic Energy Services for $1.4 billion.

With its Grey Wolf purchase, Precision will acquire 121 rigs to be used for drilling for natural gas in the U.S., making the Calgary-based firm the largest North American gas drillers.