Image courtesy of C&J Energy.

A Delaware judge suspended the merger of C&J Energy Services with the well maintenance unit of Nabors Industries Tuesday after deciding C&J’s board failed to adequately hear other potential offers before accepting the deal.

The deal will be suspended for 30 days in response to a lawsuit filed by C&J shareholders.

C&J was ordered to shop for other potential buyers during the suspension period, the Wall Street Journal said.

In June, Bermuda-based Nabors agreed to merge its well maintenance unit with Houston-based C&J for $2.86 billion in cash and stock.

Nabors is set to earn $937 million in cash and 62.5 million shares in the merged company.

Although C&J is the buyer in the deal and would manage the merged company Nabors would hold a 53 percent share.

The court said that because C&J shareholders are effectively giving Nabors control of their investments C&J must hear other offers to ensure shareholders are getting the best price possible, the Wall Street Journal said.

Neither company has commented on the decision.


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