Offshore Oil Driller to Acquire Competitor

Offshore oil and gas driller Pride International Inc. said it plans to acquire Marine Drilling Cos., but Pride’s stock fell sharply on the news, slashing the value of the all-stock deal to around $1.6 billion.

Under plans approved by directors of both companies, stockholders of each company will receive one share in a newly formed company for each Pride or Marine Drilling share they own.

Pride and Marine Drilling, both based in Houston, said the deal would create the offshore drilling industry’s third-largest player after Transocean Sedco Forex Inc. and Noble Drilling Corp.

Pride shares fell $5.15, or 16%, to close at $27.50 while Marine Drilling’s stock fell $1.17, or 4%, to close at $26.55, both on the New York Stock Exchange.