Smith International Inc. (SII) And Schlumberger Ltd (SLB) May React On Correction In Energy Sector

Smith International Inc. (NYSE: SII) is likely to start on a subdued note in the morning trading on Tuesday after its buyout by Schlumberger Ltd. (NYSE: SLB) in an all stock deal for $11 billion yesterday. This is because Smith International Inc. (SII) climbed 8.8% on Monday itself following the deal.

Apart from this, the fact that all energy stocks remained sluggish yesterday on concerns of recovery in the US, and that Smith International Inc. (SII) is also a provider of services and products for oilfield related business lines, is also likely to prove to be a dampener on the stock price of Smith International Inc. The buyer, Schlumberger Ltd (SLB) is also likely to witness further correction on Tuesday.