Schlumberger to Acquire Rival Camco

New York-based Schlumberger Ltd., a leading oil field services company, said it agreed to buy one of its smaller rivals, Camco International Inc., in a stock swap worth about $3.1 billion. Word of the acquisition sent Houston-based Camco’s stock soaring almost 20%, gaining $12.48 to close at $74.73 on the New York Stock Exchange. Schlumberger’s stock fell $3.69 to close at $66.25, also on the NYSE. The $3.14-billion stock deal comes amid consolidation in the oil industry and cutbacks in capital spending for exploration and production as oil prices linger near 12-year lows. Terms of the transaction call for Camco shareholders to receive 1.18 Schlumberger shares for each Camco share. Schlumberger Vice Chairman Victor Grijalva said the merger will produce $30 million in cost savings in 1999.