Wexford group reports 12.85% stake in Bronco, opposes merger with Allis-Chalmers

By Devika Patel

Knoxville, Tenn., July 25 - A group of Bronco Drilling Co., Inc. investors led by Wexford Capital LLC reported a 12.85% stake and said it is opposed to the company's proposed acquisition by Allis-Chalmers Energy Inc., according to a Friday schedule 13D filing with the Securities and Exchange Commission.

As of July 15, Wexford, its subsidiaries and its controlling shareholders now own 3,374,778 shares, or 12.85%, of Bronco's outstanding shares, according to the filing.

Wexford said it has been in touch with Bronco, adding that it believes shareholders' interests would be best served if the merger is not approved.

Investor Third Avenue Management previously said it is also opposed to the transaction. It reported a 23.4% stake on April 8.

On Jan. 24, Allis-Chalmers agreed to acquire Bronco Drilling in a cash and stock deal valued at $437.8 million.

Bronco Drilling, located in Edmond, Okla., provides contract land drilling and workover services to oil and gas exploration companies. Houston-based Allis-Chalmers provides services and equipment to oil and natural gas exploration and development companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.