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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: marc chatman who wrote (45734)	6/1/1999 6:43:00 PM
From: Linkdog	Read Replies (3) \| Respond to of 95453

Marc, That is not what the article says. It states "Global Marine rejected a plan to merge with R&B Falcon Corp. because that driller has too much debt.." It did not say because of financial problems. I think the interesting thing about the article is that RIG is apparently looking for diversification and a move into the shallow water market. Since the deep water recovery is expected to lag the shallow water I think RIG is looking for growth over the next year or two and into the future. Interstingly enough, FLC management has said publicly that they are willing to sell out. I don't anticipate that they will have any problems with control in combination. All they want is the right $ amount. I guess the long and the short of it is that talks are underway in the industry and once one major deal happens I would look for several more. The industry must consolidate to fight the super oil majors and gain some pricing leverage. I think the mating dance is underway drilling sector wide and that we will soon see some stock swap deals. PS I'm still calling for Diamond Falcon. (I think they will do it for the same reasons RIG wanted GLM)