Proxy firm urges Grey Wolf holders to reject deal: report
PHILADELPHIA (Reuters) - A proxy advisory firm urged shareholders of drilling services provider Grey Wolf Inc GW.A to reject a takeover bid from Basic Energy Services Inc (BAS.N), The Wall Street Journal reported on Sunday.
RiskMetrics Group Inc, formerly known as Institutional Shareholder Services, questioned the rationale behind the deal and criticized Grey Wolf for weighing a rival bid from Precision Drilling Trust (PD_u.TO), the newspaper said in its electronic edition.
RiskMetrics also raised questions about potential conflicts of interest among some Grey Wolf board members who voted for the deal with Basic Energy, the newspaper said.
Grey Wolf Chief Financial Officer David Wehlmann told the Wall Street Journal the company was disappointed with RiskMetrics' recommendation.
He said Grey Wolf carefully reviewed the offer from Precision Drilling, but viewed the deal with Basic Energy, a well site services provider, as better for Grey Wolf shareholders.
"We believe that it will provide near- and long-term value to shareholders," Wehlmann told the paper.
Grey Wolf, Basic Energy and RiskMetrics could not be immediately reached for comment.
(Reporting by Jessica Hall; Editing by Clarence Fernandez)
(For more M&A news and our DealZone blog, go to here)
