Dril-Quip (DRQ) Faces Strong Opposition to Innovex Merger

Core Viewpoint - Dril-Quip, Inc. is facing significant opposition to its proposed merger with Innovex Downhole Solutions, primarily from GAMCO, which holds 8.32% of Dril-Quip's shares, and Institutional Shareholder Services (ISS) has issued a mixed recommendation regarding the merger [1][2][5] Merger Details - The merger aims to combine Dril-Quip and Innovex under the Innovex Downhole Solutions name, potentially creating a more resilient earnings profile [3] - Concerns have been raised about the merger terms, as Innovex and Amberjack Partners would gain control of the combined entity without providing a control premium to Dril-Quip shareholders [3][4] - The new board structure would consist of up to nine directors, with Amberjack appointing four members, Innovex's CEO, and Dril-Quip appointing the remaining four, effectively giving majority control to Innovex and Amberjack [4] Compensation Issues - Dril-Quip's CEO Jeff Bird is expected to receive a compensation package of $8.1 million, while CFO Kyle McClure is set to receive $3.8 million due to the change of control triggered by the merger [4] Shareholder Sentiment - The future of the merger remains uncertain as shareholders prepare to vote, with significant opposition and governance concerns still prevalent [5]