Jefferies Downgrades Superior Well Services to Hold After Merger Agreement (SWSI)

Nabors NBR agreed to acquire Superior Well Services SWSI for $22.12 in cash. This represented a 21% premium to Friday's close. Jefferies raised its estimates for SWSI. The analysts raised 2010-11 EPS estimates to SWSI to $0.48 and $1.30 from ($0.28) and $0.70, respectively. The analysts said, "We are raising our price target to the cash deal price of $22.12 and lowering our rating on SWSI to Hold from Buy based on the upside to the deal price. We do not expect another bidder to emerge and view the deal as highly likely to go through. We do see the small possibility that SWSI shareholders push for a higher price from Nabors."