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To: RBlatch who wrote (121)10/20/1998 2:59:00 PM
From: John Patterson
   of 164
 
Don't really know if you are right or wrong. I guess it's a sweet deal for NBR and the BDI insiders and officers but as a BDI shareholder with a cost basis of $15, I personally think it sucks!

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To: John Patterson who wrote (122)1/6/1999 6:55:00 PM
From: FranW
   of 164
 
Another acquisition ???

Houston, Jan. 4 (Bloomberg) -- Pool Energy Services Co., an oilfield services company, began talks with Nabors Industries Inc., the largest U.S. driller of land-based oil and natural gas- wells, about the $453 million takeover offer Pool previously rejected as inadequate.

The news comes little more than a week before Pool shareholders are to vote on a Nabors-backed resolution recommending that Pool be sold at the highest available price. Pool had refused to discuss the Nabors bid, saying it was tantamount to a ''fire sale'' because oil prices near 12-year lows have pushed down industry shares.

Pool's bankers from Morgan Stanley told Nabors's bankers at Merrill Lynch that the company reversed itself and is willing to talk about a possible takeover, said Nabors Chief Executive Eugene Isenberg. Pool most likely changed its mind after talking to shareholders and finding many in favor of the resolution, said Fred Mutalibov, a Southwest Securities Inc. analyst.

''They saw they were going to be pushed that way anyway and said, 'Why not do it right away?' '' said Mutalibov, who has an ''accumulate'' rating on Pool shares.

If combined, the Houston-based companies could save as much as $14 million a year by closing administrative offices in places where their businesses overlap, such as Alaska, Mutalibov said. Such cost-cutting is necessary with oil prices so low, he said.

Negotiations Welcomed

Nabors still expects to proceed with a resolution vote Jan. 12 unless an agreement can be reached beforehand, said Isenberg, adding that no substantive negotiations have taken place.

''They expressed a willingness to negotiate,'' Isenberg said. ''I welcome it.''

In a statement, Nabors said no agreement was reached in preliminary conversations over the weekend and no further discussions were scheduled. George Gaspar, a Robert W. Baird & Co. analyst, said Nabors's statement downplaying the talks was a way of ''keeping the pressure on Pool'' to begin serious negotiations. Gaspar has an ''accumulate-buy'' rating on Nabors shares.

Dennis Smith, a Nabors spokesman, declined to comment on whether the vote forced Pool to act. Pool officials couldn't be reached. In a statement, Pool said it didn't expect to comment on the discussions until an agreement is signed or the talks end.

Nabors in October offered 0.481 shares and $6.125 in cash for each Pool share and said it would assume about $178 million in debt. Nabors operates oil rigs in many of the same areas as Pool and expects the transaction will help it save money.

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To: FranW who wrote (123)1/6/1999 9:34:00 PM
From: TheSlowLane
   of 164
 
I increased my position today at 14.50. Didn't expect a move so soon but not too unhappy about it.

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To: TheSlowLane who wrote (124)1/11/1999 8:30:00 AM
From: BBG
   of 164
 
Looks like the POOL (PESC) aquisition is a done deal....

Pool, Nabors seen holding weekend deal talks
Reuters Story - January 08, 1999 17:31
By Robin Sidel

NEW YORK, Jan 8 (Reuters) - Pool Energy Services Co. and hostile bidder Nabors Industries Inc. are expected to spend the weekend negotiating a potential transaction ahead of a key shareholder meeting on Tuesday.

Although Pool has spent the past three months fighting Nabors' $293 million offer, the Houston-based company is expected to yield to shareholder pressure and sell itself.

Earlier this week, the two companies admitted they had held discussions, but Nabors said no other talks were scheduled.

But people familiar with both companies said it would be reasonable to assume that talks indeed were being held.

Pool is holding a special shareholder meeting Tuesday in which investors will be asked to vote on a non-binding resolution to sell the company. Although Nabors proposed the resolution after Pool rejected the offer, it does not say the company should be sold to Nabors.

Shareholders are widely expected to support the resolution, which comes as oil prices are hovering near 12-year lows.

The Nabors resolution is expected to win support from big Pool shareholder Al Gonsoulin, who holds a 10 percent stake in the company, resulting, in part, from last year's sale of Louisiana-based Sea Mar to Pool. Gonsoulin was chief executive of Sea Mar and still manages those operations for Pool.

Gonsoulin could not be reached for comment.

No other bidders are expected to emerge for Pool.

"I'm pretty optimistic that Nabors is going to win this fight. I would guess that a deal would be consummated in the near future," said William Herbert, an analyst at New Orleans-based Howard, Weil, Labouisse, Friedrichs Inc.

Pool provides maintenance services for oil and gas wells and also performs contract drilling. Nabors is a bigger player in the oil services business.

Pool declined to comment on Friday, referring only to its Monday statement that the two companies were in talks. Nabors declined comment.

Nabors, which also is based in Houston, offered in October to buy Pool for $6.125 in cash and 0.481 in Nabors shares for each of Pool's 21 million outstanding shares. Based on Friday's stock activity, the bid values Pool at about $13.95 per share.

The offer also calls for the assumption of $178 million in Pool debt.

Shares of Pool were trading Friday afternoon at $13.75 each on Nasdaq, down 6 cents from Thursday. Nabors stock was unchanged at $16.06 on the American Stock Exchange.

Industry sources have said Nabors would likely sweeten its offer to strike a friendly transaction.

"I think the assets are worth more" than the Nabors bid, said Johnson Rice & Co. analyst Joe Agular, who values Pool in the upper teens.

Copyright 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon

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To: BBG who wrote (125)1/11/1999 10:04:00 AM
From: BBG
   of 164
 
Nabors Industries to Acquire Pool Energy Services for $518 Million; Pool Shareholders to Receive 1.025 Shares of Nabors For Each Pool Share
PR Newswire - January 11, 1999 08:41

JD

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To: BBG who wrote (125)1/11/1999 10:30:00 AM
From: TheSlowLane
   of 164
 
Excellent, if not too surprising, news. Why is NBR down today?

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To: TheSlowLane who wrote (127)1/11/1999 10:55:00 AM
From: BBG
   of 164
 
Could be that the market thinks NBR paid too much for PESC... I also think it's normal for the buyer to be down and the buyee to be up...

JD

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To: Jim Lou who wrote ()1/15/1999 11:04:00 PM
From: William Peavey
   of 164
 
All,

One of the money manager types on CNBC this morning was hyping Nabors pretty hard, extolling the CEO with his unerring ability to grow by acquisition, successfully leveraging this company to be ready for the next oil price hike. I believe this conversation mentioned oil potentially going over $15 this year.

Does anyone else have a better memory of this discussion? It had the stock up over a dollar early on, but it fell back.

Bill Peavey

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To: William Peavey who wrote (129)1/16/1999 6:02:00 AM
From: TheSlowLane
   of 164
 
I heard about this on the Yahoo! thread, but the couple of posts that mentioned it didn't include any more detail (like the name of the manager, for example). There seems to be a fairly broad consensus that oil services and drillers, and Nabors in particular, are at or near their bottom and that recovery among the strongest players in the group is just a matter of time. I've heard that NBR has a strong hand and can ride out these times - and will be very well positioned when oil makes a comeback. A money manager I know said that NBR has been known to make opportunistic acquisitions in the past and I think this deal with PESC was the latest example of that. I got into NBR at around 25, right before the bottom fell out, but bought more at 14.50 quite recently. Looks like it could be a year or so before we are back in good shape, but that can work well from a cap. gains perspective if I wish to exit at that time...

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To: TheSlowLane who wrote (130)1/16/1999 8:24:00 AM
From: William Peavey
   of 164
 
Thankyou Paul,

I'll check Yahoo. Normally I have been more comfortable with the quality of the thinking here on SI, but I am finding pretty good source material on ELON another of my holdings at Yahoo, so I signed up there.

It appears that our analysis may have been quite concurrent on Nabors. I have it in a small profit sharing plan at 23 1/4 and then 14 7/16.
My resource plays have not done me real proud this past year.

Bill Peavey

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