PRIDE-MARINE DRILLING COMBINATION WOULD CREATE A SOLID JACKUP COMPETITOR

Pride International Inc. (NYSE: PDE) and Marine Drilling Companies Inc. (NYSE: MRL) agreed to merge last week in an all-stock transaction that would create an offshore drilling contractor with a solid presence in the hot jackup drilling market. But Pride's stock traded as much as 19 percent lower

"(Pride's stock price) has been built up over the past week because everyone thought they were going to be a takeover target. I think the (merger) news brought it back down," said one Wall Street oil analyst, who asked not to be identified. "And also from a Pride shareholder perspective, it's not an overly attractive deal. At best, it's earnings neutral for next year.

"From a Marine shareholder standpoint, it looks a lot better," the analyst told Petroleum Finance Week. "You're getting a good 15-20 cents in accretion next year and you're getting deepwater assets that you didn't have before."