Offshore oil and gas acquisitions
Although it seems like the optimum time for acquisitions to be made in the offshore oil and natural gas industry, most companies are holding back from making deals, but one that may be ready to sell is Pride International (NYSE:PDE).
The overall problem in the industry is everyone wants to buy but not sale, as they look to enhance the scale of their own companies, but not someone else's.
Even though Pride rejected a bid from Seadrill in 2008, the reasoning was connected to the timing in relationship to market conditions, rather than simply not wanting to be acquired. Seadrill still has a 10 percent stake in Pride.
Pride has also streamlined recently, selling off its shallow-water division, Seahawk Drilling in anticipation of a boom in deep-water drilling.
Some analysts are high on Pride International, saying they are the third-fastest growing stock in the sector, estimating annual earnings of 23.1 percent in the years ahead. That would make them a great acquisition if they're on the market.
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