US Regulators Approve Hercules-Seahawk Deal
March 31 2011 - 12:25PM
Dow Jones News
Hercules Offshore Inc. (HERO) on Thursday said in a securities
filing that it has received approval from U.S. antitrust regulators
to proceed with purchasing the assets of smaller rival Seahawk
Drilling Inc. (HAWKQ).
Hercules agreed in February to acquire Seahawk's 20
shallow-water drilling rigs and other assets for about $100 million
in cash and stock. Seahawk, which says it was hurt in large part by
a slowdown in Gulf of Mexico drilling activity following the
Deepwater Horizon disaster, filed for Chapter 11 bankruptcy
protection simultaneously with announcing the asset sale.
The two companies are the leaders in drilling at depths of less
than 500 feet in the Gulf of Mexico.
With the blessing of federal regulators, the acquisition now
must win the approval of a federal bankruptcy judge in Corpus
Christi, Texas.
Hercules said it expects the transaction to close during the
second quarter.
Shares of Hercules recently traded 5.2% higher at $6.65.
-By Ryan Dezember, Dow Jones Newswires; 713-547-9208;
ryan.dezember@dowjones.com