One day after 19552 Yukon Inc. (Yukon) announced its interest in acquiring Calgary-based Command Drilling Corp. in a cash offer, Command CEO Robert S. Bruce reported that the company has reviewed what he calls an “inadequate” offer. Yukon, an affiliate of Houston-based Nabors Industries Inc., made an unsolicited cash offer of $3.30 per share to acquire Command on Monday (see Daily GPI, Sept. 18).

Command said that none of the company’s directors, officers or holders of employee stock options have entered into lock-up agreements with Nabors. “At this point, it is my feeling that the offer is opportunistic and inadequate,” Bruce said. “I believe the price offered does not reflect the underlying value of Command’s assets, nor does the offer reflect Command’s financial and operational success in the year since we went public.”

Yukon said the bid represents a 20% premium over the closing price of the Command shares on Sept. 14, 2001.

Command established an independent strategic committee of the board on Aug. 23 to consider and evaluate, on an ongoing basis, its long-term, strategic direction. The company said that the unsolicited proposal from Nabors will be evaluated by the committee, and a more “detailed response” will be released to the company’s shareholders on a “timely basis.”

Command is an oilfield services company providing contract drilling services to the oil and natural gas industry. Command currently owns 15 drilling rigs of various sizes and capabilities as well as related support equipment. The company began trading on The Toronto Stock Exchange on June 5, 2000. Prior to that, it operated for more than 20 years as a private company.

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