Sunday, June 01, 2008 1:18:05 PM
Friday May 30, 5:09 pm ET
GulfMark shares surge to all-time high after oil service provider announced Rigdon deal
NEW YORK (AP) -- Shares of GulfMark Offshore Inc. surged to an all-time high Friday, a day after the oil service provider announced plans to buy private offshore vessel operator Rigdon Marine Corp. for about $283 million.
Wall Street analysts cheered the move, with one raising his rating on the company and another noting that the acquisition "significantly expands" the Houston company's U.S. presence.
Under the terms of the deal, GulfMark will pay $150 million in cash and offer 2.1 million GulfMark shares to Rigdon, making the stock portion of the deal worth about $133 million at the time it was announced. GulfMark will also assume about $268 million in debt and spend about $19 million to complete the construction of some new vessels.
Capital One Southcoast analyst Pierre Conner III raised his rating on GulfMark, which provides transportation to offshore oil drillers, to "Add" from "Neutral" after the transaction was announced.
"With the deal, GulfMark is delevered from the North Sea and adds a large (Gulf of Mexico) exposure that should provide more stable dayrates that should continue to grow," he wrote in a client note.
Jefferies & Co. analyst Judson Bailey, who noted that the deal "significantly expands" GulfMark's U.S. presence, well positions the company to take advantage of demand in lucrative "deepwater" regions far from the coast.
GulfMark shares rallied $1.72, or 2.6 percent, to $67.13. The stock jumped as high as $70.98, a new high, earlier in the session.
link - http://biz.yahoo.com/ap/080530/gulfmark_mover.html?.v=1
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