DALLAS -- Sedco Inc., the oil drilling equipment firm founded by Texas Gov. William Clements, made a minimum $24.5 million by selling 350,000 shares of Delhi International Oil Corp. shortly before Delhi suffered one of the worst single-day losses in stock market history.
Sedco President Gill Clements said Wednesday Delhi's unexpected market plunge was a 'real shocker.'
'I guess we were lucky more than anything else,' he said. 'I think we recognized that this company had a lot of undervalued assets at $20 a share.'
On Tuesday, Delhi stock plummeted 37 points to 77 , after the small Dallas-based oil firm, long a target of takeover speculation, announced it had received no offers.
Sedco, also headquartered in Dallas, began purchasing Delhi stock early in 1980. By the time Delhi's stock reached $40 a share, Sedco had accumulated 930,000 shares, 12.4 percent of the company.
Sedco originally had considered taking over Delhi, but when Delhi stock went over $40 a share, Sedco stopped buying.
Clements said Sedco's decision to sell some of its Delhi stock this month was based on rumors Delhi stock would be sold for from $120 to $200 a share.
'When those rumors started circulating the stock price started rising,' he said. 'As soon as it got above $100 we started selling.'
Sedco still owns 7.5 percent of Delhi, which it eventually plans to sell. Clements said Sedco made an average profit of $70 per share on its timely sales of Delhi stock, made between Aug. 11 and Aug. 17.
