Will Grey Wolf Accept Precision Drilling's New Offer?

After having two bids rejected in the same week, will Precision Drilling Trust (PDS) take another stab at acquiring Grey Wolf Resources Inc. (GW)?  Peter Doig certainly thinks so, telling clients in a note Wednesday another offer is likely. 

The Scotia Capital analyst said:

We don't believe Precision will walk away just yet.  We continue to view the C$10 per share as the high water mark that Precision would feel comfortable bidding up to, before breaking away to pursue other growth options in the U.S. either.     

On Tuesday, Grey Wolf board of directors rejected Precision's latest offer of $9.30 per share, up from $9 previously, because it believes shareholders are better served by its own acquisition of  Basic Energy Services Inc. (BAS).

Mr. Doig maintained his "sector outperform" rating on Precision stock and C$29.25 target price. 

Comments

[PNW]

Is PDS chasing wolves just to avoid becoming lunch for a bigger, maybe international, company? It looks to me like PDS has extremely low debt, strong and increasing free cash flow, and is tradiing a a relatively low multiple. It seems to have a strong managment team, very clean strategic direction, and is in a sweet spot for future growth/profit. Given the 2011 trust structure tax change, they might be somewhat disadvantged in their current structure. Trusts seems to challenge accumulating capital (and rasiing capital) for expansion. I guess if they bought Gray Wolf they could move incorporation to the US?
Assuming that the PDS management team ARE gifted strategic thinkers, I wonder if there is a "Part Two" to the Gray Wolf move?
It might be argued that "if" PDS were to move South the valuation would jump significantly??