Arctic Directory: Schlumberger, Smith International agreement
Schlumberger said Feb. 21 that it and Smith International Inc. have unanimously, with its board of directors, approved a definitive merger agreement in which the companies combine in a stock-for-stock transaction. Under terms of the agreement, Smith shareholders will receive 0.6966 shares of Schlumberger in exchange for each Smith share. Based up on the undisturbed closing stock prices for both companies on Feb. 18, the agreement places a value of $45.84 per Smith share, and represents a 37.5 percent premium. Upon closing, and reflecting the issuance of new Schlumberger shares, Smith stockholders collectively will own approximately 12.8 percent of Schlumberger’s outstanding shares of common stock. Schlumberger expects to realize incremental pretax synergies, after integration costs, of approximately $160 million in 2011 and $320 million in 2012. Schlumberger expects the combination to be accretive to earnings per share in 2012. For more information visit www.slb.com.
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