Farm Equipment - Looks Like Allis-Chalmers Energy is going down

On August 13, 2010, Allis-Chalmers Energy Inc. (“Allis-Chalmers” or the “Company”)
announced that it had agreed to sell the Company to Seawell Limited (“Seawell”)
(NOTC: SEAW). Under the terms of the transaction, Allis-Chalmers shareholders will
have the right to elect to receive either $4.25 in cash or 1.15 Seawell common shares
for each share they own, subject to pro-ration if more than 35% of the shares elect to
receive cash, placing the total value of the transaction at approximately $890 million
(including assumed debt).

The investigation concerns whether the Allis-Chalmers Board of Directors breached
their fiduciary duties to Allis-Chalmers stockholders by failing to adequately shop the
Company before entering into this transaction and whether Seawell is underpaying for
Allis-Chalmers shares, thus unlawfully harming Allis-Chalmers stockholders. In
particular, Allis-Chalmers stock traded at $4.57 per share as recently as January 14,
2010 and at least one analyst set a price target for Allis-Chalmers stock at $7.00 per
share.