Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Flan who wrote (27537)	8/11/1998 5:11:00 PM
From: SliderOnTheBlack	Read Replies (1) of 95453

No one confuse CDG ''selling'' for $22-26 with ''REALITY''. CDG did not sell for $22 or $26. Remember it is a stock deal. CDG is getting 1.7 shares of FLC for each share of CDG. They would be getting $51 if FLC was selling for $30 -- which is a fair/normal market price under traditional or normal market conditions. In their mind (hopefully) they are valuing this as such. Trust me; CDG would not accept $26 in cash ! Stock is apples for apples. It's $22 or $26 today or $51 tomorrow...as the stock fluctuates... They are riding on FLC's growth going forward, something they didn't have. MDCO & CDG - any drillers with ''old'' fleets will merge or acquire imho. They will have to refurbrish or build new, as 10% of Rigs are getting retired annually according to one news release. I think NE or MDCO will be the next to go. Both have newbuild capacity coming online and are good fits for GLM, DO or even RIG - but don't see RIG acquiring off a recent sale of a subsidiary unit... maybe they'll buy a Fab company & not a driller - didn't ''someone'' have this idea before ?

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