Schlumberger Gets Smith International For $11B
February 22, 2010 1:05 AM
Schlumberger (NYSE: SLB), the world's largest provider of oilfield services will acquire rival Smith International (NYSE: SII) in an all-stock deal valued at $11 billion. Smith is the largest provider of drilling fluid services.
Rumors of the deal started to fly on Friday, launching Smith's shares higher by 13%. Smith holders will get 0.6966 Schlumberger share for each share they hold, according to Bloomberg News.
Analysts said a potential Smith acquirer would likely have to pay north of $8 billion to purchase the company. At least one analyst speculated that Smith may have other suitors, including National Oilwell Varco (NYSE: NOV).
The Schlumberger-Smith marriage is the largest M&A transaction in the U.S. this year and Schlumberger's biggest deal to date. Schlumberger said the deal will add to earnings in 2012.
