Basic Energy Ends Proposed Buyout of Grey Wolf

MIDLAND, Texas (AP) - Basic Energy Services says it's called off its proposed takeover of onshore oil and gas driller Grey Wolf Incorporated.

That's after shareholders of Houston-based Grey Wolf voted against the deal. Basic Energy is a Midland-based wellsite services company. In April, it agreed to pay Grey Wolf shareholders $1.82 in cash and a quarter share of the new company for each of their shares.

Basic Energy holders would receive $6.70 in cash and 0.9195 of a share. Based on the companies' closing stock prices April 18th, the combined company would have been worth 2.9 billion dollars. The deal carries a 30 million-dollar breakup fee.

Grey Wolf continually rejected overtures from Canada's Precision Drilling Trust in favor of the Basic Energy deal. It said Precision Drilling's proposal undervalued the company and didn't offer a significant premium to shareholders.