By Josh Beckerman
C&J Energy Services Inc. said its court-ordered process of
seeking alternative deal proposals has started and will run until
Dec. 26.
On Monday, a Delaware court blocked the oil-field service
company's planned merger with a unit of Nabors Industries Ltd.,
finding C&J's board didn't adequately shop the company. The
court required C&J Energy to seek new bidders during a 30-day
period. C&J Energy said it planned to appeal.
In June, C&J Energy agreed to buy the Nabors unit for more
than $2.8 billion. The deal was structured as a "reverse Morris
Trust." A judge ruled that the structure effectively made C&J
the seller, not the buyer, triggering an obligation for C&J's
board to get the best deal for its shareholders.
C&J said Wednesday that it hired Morgan Stanley to assist in
the solicitation of offers to buy the company or a controlling
stake.
The company said it doesn't expect the solicitation process to
delay the closing of the Nabors deal.
In response to the court order, a Jefferies analyst said that it
is "very unlikely that this 30-day window yields any 'better'
offers for CJES shareholders."
C&J shares closed down nearly 5% at $18.26 on Wednesday.
Write to Josh Beckerman at josh.beckerman@wsj.com
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