C&J Energy Begins Court-Ordered Solicitation of Alternatives to Nabors Deal

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 [e-mail]

Access Investor Kit for Nabors Industries Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BMG6359F1032

Access Investor Kit for C&J Energy Services, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US12467B3042

Access Investor Kit for Morgan Stanley

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6174464486

Subscribe to WSJ: http://online.wsj.com?mod=djnwires