A Jefferies & Co. analyst upgraded Transocean Inc. and GlobalSantaFe Corp. on Monday, saying the decline in the oilfield services providers' stocks since the companies announced a merger is overdone.
Last month, GlobalSantaFe and Transocean Inc. agreed to join forces to create the world's biggest fleet of oil rigs. These companies operate ships that oil companies use to drill for oil, as well as other oil services.
Shares of both companies are down more than 13 percent since the deal was announced. Jefferies analyst Judson E. Bailey said investors are worried that decaying credit quality could drag the economy into recession, which would stanch demand for energy.
