Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mike Drickamer from Morgan Keegan. Please proceed.
Mike Drickamer - Morgan Keegan
Hey, good morning, guys.
Micki Hidayatallah
Good morning, Mike
Mike Drickamer - Morgan Keegan
Micki, it must be awfully tough having to go to Rio, let me tell you.
Micki Hidayatallah
Yes.
Mike Drickamer - Morgan Keegan
I hate to start off with a tough one for you, Micki, but you guys didn't mention any update on the Bronco Drilling acquisition. Can you let us know where you stand in the process there?
Micki Hidayatallah
Yes, as you are aware, Mike, we do have a legally binding purchase agreement at $16.33 per share that is subject only to shareholder approval. The agreement was made because we felt that the board of directors and management of Bronco and the Board of Directors and management of Allis-Chalmers had a shared vision. And the inherent values behind the sales purchase agreement were based on fairness opinions provided by two independent investment banks.
Subsequent to that, a no-solicitation clause is in place. But obviously there has been, since the public announcement, no competing bid higher than the agreement. It is our intention to confirm the inherent values that we have established for the combined operation and to continue to pursue shareholder approval from the shareholders of both companies.
Mike Drickamer - Morgan Keegan
Okay, Micki. I mean, we have had very publicly some shareholders state that they are voting against it; not enough that I think you have a majority against the vote yet. Shareholders you are talking to, are they telling you anything any different?
Micki Hidayatallah
Well, I think it is difficult for us to analyze that, because we are not currently in discussions directly with any shareholders of Bronco, and we are not privy to any discussion that may have occurred between the management of Bronco and their shareholders. So, we continue to believe that the transaction makes a lot of economic sense based on the inherent values, and to continue to pursue the acquisition; or alternatively consider all our strategic alternatives and other opportunities that may come from time to time.
Mike Drickamer - Morgan Keegan
Okay. I guess one more on that would be -- where do we stand as far as mailing the proxy cards?
Micki Hidayatallah
As far as I know, can I ask Ted Pound to answer that?
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