Equity Research and Investment Analysis

This is a sad development for Grey Wolf as it breathes its last breath as an independent company in the coming days. It had a great opportunity on a shareholder value basis to make it through this painful downturn or to seek a better offer. At this point, however, it appears that it is all over.

Grey Wolf has been offered about $2 billion to merge with PDS but considering GW rejected a richer bid not long ago, we think this is unlikely to be approved. We agree with the shareholders that this undervalues the company and we recommend holding out for a better offer.