Tuesday, June 15, 2010

Dare We Connect The Oily Dots?

There are some pretty strange things being dredged up - and not just in the Gulf of Mexico.

About a week before the gulf oil spill, Halliburton bought Boots and Coots, an emergency response oil control company. They spent $232 million for this acquisition.

April 12, 2010
Oil giant Halliburton (HAL: 24.48, 0.12, 0.49%) announced late Friday that it will purchase emergency response oil control company Boots & Coots (WEL: 2.96, 0, 0%) in a deal valued at around $232 million.

Boots & Coots shares soared on Monday by more than 25%.

Under terms of the deal, Boots & Coots shareholders will receive $1.73 in cash and $1.27 of Halliburton stock for each Boots & Coots share, a 28% premium to Friday’s closing price.

The deal is expected to boost Halliburton’s bottom line during the first year after closing. At this time, it is expected that management of Boots & Coots will remain with the company.

Boots & Coots shares jumped 50 cents to $2.94. Halliburton shares rose 0.3%, or 9 cents, to $31.66.

April 20, 2010 - that was when the explosion happened on the Deepwater Horizon drilling rig.

Weeks before the spill, Goldman Sachs unloaded about 44% of their BP stock, and BP CEO, Tony Hayward, also sold 1/3 of his BP holdings.

So do these people/companies have psychics working for them - or what?