Proxy advisory firm supports merger of Bronco Drilling, Allis-Chalmers

By Lisa Kerner

Charlotte, N.C., Aug. 1 - Glass Lewis & Co. recommended that Bronco Drilling Co., Inc. stockholders vote for the merger with Allis-Chalmers Energy Inc. at Bronco Drilling's special meeting on Aug. 14.

Bronco Drilling's board of directors unanimously recommends that stockholders vote for the adoption of the agreement and plan of merger, a company news release said.

"The merger is expected to create a diversified international oilfield service provider, as well as generate substantial synergies," the Glass Lewis report noted, according to the release.

Bronco Drilling added that the report said the financial terms of the agreement "are fair for the company and its shareholders."

As previously reported, Allis-Chalmers will also hold a special meeting of stockholders on Aug. 14 to vote on the proposed merger.

Under the June 1 amended merger agreement, Bronco Drilling stockholders will receive total consideration comprised of $200 million in cash and 16,846,500 shares of Allis-Chalmers common stock, or $18.25 per share, it was noted previously.

Allis-Chalmers originally agreed to acquire Bronco Drilling on Jan. 23, 2007 in a cash and stock deal valued at $437.8 million, or $16.33 per share, consisting of $280 million in cash and Allis-Chalmers common stock valued at $157.8 million.

Houston-based Allis-Chalmers provides services and equipment to oil and natural gas exploration and development companies.

Bronco Drilling, located in Edmond, Okla., provides contract land drilling and workover services to oil and gas exploration companies.

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