Nabors (NBR) Calls Heat Up as Takeover Becomes More Likely
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Bloomberg reporting Monday Nabors Industries (NYSE: NBR) has become an attractive takeover target following the departure of its chief executive officer Gene Isenberg.
The company’s value has declined by $2.4 billion over the past six months as shares have fallen roughly 33 percent. Nabors is now valued below 97 percent of oil and gas services companies versus sales. Bloomberg noted calls which are priced 10 percent above the stock’s current price have experienced more volume recently than within the past eighteen month span when compared to the puts.
Companies who possibly could be looking to acquire Nabors includes Baker Hughes (NYSE: BHI) and Schlumberger (NYSE: SLB) as they would receive about 1,200 rigs from the deal. Nabors currently markets 491 land drilling rigs and 749 land workover rigs. Analysts state the board may be looking to receive roughly $7.2 billion or $25 per share if acquired.
With shares trading at a 10 percent discount to sales of $5.7 billion for the past 12 months, buyout firms may also be looking to take the company private. Bloomberg highlighted shares of NBR trade among the lowest of any U.S. oil and gas service company with a market capitalization of more than $1 billion. The company value is also lower than 60 of its 62 rivals on a global format.
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The company’s value has declined by $2.4 billion over the past six months as shares have fallen roughly 33 percent. Nabors is now valued below 97 percent of oil and gas services companies versus sales. Bloomberg noted calls which are priced 10 percent above the stock’s current price have experienced more volume recently than within the past eighteen month span when compared to the puts.
Companies who possibly could be looking to acquire Nabors includes Baker Hughes (NYSE: BHI) and Schlumberger (NYSE: SLB) as they would receive about 1,200 rigs from the deal. Nabors currently markets 491 land drilling rigs and 749 land workover rigs. Analysts state the board may be looking to receive roughly $7.2 billion or $25 per share if acquired.
With shares trading at a 10 percent discount to sales of $5.7 billion for the past 12 months, buyout firms may also be looking to take the company private. Bloomberg highlighted shares of NBR trade among the lowest of any U.S. oil and gas service company with a market capitalization of more than $1 billion. The company value is also lower than 60 of its 62 rivals on a global format.
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