Houston offshore oil driller Atwood Oceanics Inc. (NYSE:ATW) tried to qualm market scuttle that it's a takeover target.
The company put out a
press release after the markets closed Tuesday saying that during a meeting with analysts, CEO John Irwin and senior VP James Holland were asked about a rumor that the company was the target of a potential merger and acquisition situation. Irwin said the rumor was unfounded and the company was "unaware of any corporate activities that would account for unusual market activity for the company's stock."
It's not such a crazy idea. Atwood competes with Diamond Offshore Drilling Inc. (NYSE:DO), Nabors Industries Ltd. (NYSE:NBR) and Transocean Ltd. (NYSE:RIG), all of which have grown bigger through acquisitions. Atwood has also been the subject of takeover talk for years -- by the likes of Diamond and Noble Corp. (NYSE:NE). (Diamond has also been rumored to be a takeover target.) The talk has just increased as oil and gas prices have fallen, which has forced oil and gas explorers to cut spending, hurting drillers like Atwood. Oil and gas prices won't stay down forever, and with stock prices coming down again, there are opportunities galore for some hungry buyer.
- Claire Poole
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