47% One Day Gain On Smith International Options
Feb 22, 2010 Mergers & Acquisition, Trading Idea
On Friday, we issued a recommendation to subscribers of our Options Capitalist trading advisory service, that they buy the Smith International (SII) March 2010 37 calls, as there was a possibility a bid could be made for the company this week, by Schlumberger (SLB). We also actually posted that trade on the Navivest blog for our readers.
On Sunday, Schlumberger did announce a $45.84 per share bid for the company and the March 37 calls, which we purchased at $2.10, are now bidding $3.10, a nice 47% gain in just one trading day!
We offer compelling options trading ideas such as these twice a week via The Options Capitalist. For more info on the service, visit our site at http://www.navivest.com
Tags: acquisition, merger, schlumberger, smith international
Schlumberger and Smith International Announce Merger
Feb 21, 2010 Mergers & Acquisition
Oilfield services companies Schlumberger (SLB) and Smith International (SII), on Sunday February 21, announced that the boards of both companies have “unanimously approved a definitive merger agreement in which the companies would combine in a stock-for-stock transaction.”
Shareholders of Smith International will receive 0.6966 shares of Schlumberger in exchange for each Smith share. Based on the closing stock prices of Schlumberger on Friday, February 18, 2010, this values the deal at $45.84 for each Smith International. Smith International has 247.4 million shares outstanding, putting the total value of the deal at $11.1 billion.
Upon completion of the deal, Smith International’s shareholders will own 12.8% of Schlumberger’s outstanding shares of common stock.
Tags: merger, schlumberger, smith international
