Last night I played a blank tape at full blast. The mime next door went nuts.
Schlumberger Ltd. and Smith International Inc. said Sunday that their boards of directors have approved Schlumberger’s plan to buy its fellow oilfield-services provider in an $11.34 billion, stock-for-stock, deal.
Under the agreement, Smith, shareholders will get 0.6966 shares of Schlumberger / for every Smith share, Schlumberger said in a statement.
The transactions values Smith’s stock at $45.84 a share, based on closing prices on Feb. 18. Smith shareholders will own roughly 12.8% Schlumberger’s outstanding shares of common stock.
No doubt the OIH will have a beautiful rally today and the chart looks bullish. Another name in the sector that caught some love on Friday was Weathorford (WFT). Nice chart, right sector. Others will play as well.
No doubt the M&A factor could be just what the market needs to catch a leg higher.