Court Reportedly Holds Up C&J Merger With Nabors Well Maintenance Business

(RTTNews) - A Delaware court has held up a $2.86 billion merger between C&J Energy Services Inc. (CJES) and a unit of oilfield services provider Nabors Industries Ltd. (NBR), the Wall Street Journal reported, quoting people familiar with his decision.

The court found that C&J's board did not sufficiently shop the company, and suspended the deal for 30 days. During this period, the C&J board has to feel out other potential buyers.

It was on June 25 that Nabors agreed to merge its well maintenance business with C&J in a cash and stock deal valued at about $2.86 billion. The deal, which was approved by the board of directors of both companies, was expected to close by the end of 2014.

At that time, Nabors said that as consideration, it would receive 62.5 million shares or 53 percent ownership in the combined company and about $940 million cash, which will be paid from proceeds of a public debt placement by the combined company. Existing C&J stockholders were to own about 47 percent of the combined company.

CJES closed up 1.1 percent on Monday at $19.01, while NBR closed down 3 percent at $16.40 and rose 0.55 percent in the extended trade.