Nabors offers to buy Pool Energy

Journal Record, The (Oklahoma City), Nov 2, 1998

HOUSTON (JR) -- Nabors Industries said on Friday it has offered $486 million in stock, cash and assumed debt for Pool Energy Services Co., and urged Pool's board to reconsider its opposition to the acquisition.

Nabors offered 0.481 shares and $6.125 in cash for each Pool share. The offer values each Pool share at $14.51, a 23 percent premium over Pool's recent closing price.

Nabors said that earlier this week Pool's board had rejected a buyout offer, saying Pool was "not interested in pursuing the discussions" with Nabors. "We are determined to effect a combination of Nabors and Pool," said Eugene Isenberg, Nabors' chairman and chief executive officer, in a statement. "We believe that our two companies would be a superb fit." The two Houston-based companies, if joined, would combine Nabors's expertise as the largest onshore contract driller of oil and gas wells with Pool's onshore and offshore service experience. Nabors acquired a 4.8 percent stake in Pool in June 1994, although Pool enacted a poison pill provision later that month to forestall a hostile bid for the company. Nabors already has another deal in the works. On Oct. 19, an agreement was announced for Nabors to buy Bayard Drilling Technologies of Oklahoma City in a $220 million deal. Bayard will merge into a new, wholly owned subsidiary of Nabors Industries.