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| FORM 3 | U.S. SECURITIES AND EXCHANGE COMMISSION
+--------+ WASHINGTON, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting Person*
Varco International, Inc.
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(Last) (First) (Middle)
743 North Eckhoff Street
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(Street)
Orange, CA 92868
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(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year) 03/22/00
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3. IRS Identification Number of Reporting Person if an Entity
(Voluntary) 95-0472620
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4. Issuer Name and Ticker or Trading Symbol Tuboscope Inc. TBI
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
___ Director ___ Officer [X]10% Owner ___ Other
(give title below) (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint Group Filing (Check Applicable Line)
[X] Form Filed by One Reporting Person
____ Form filed by More than One Reporting Person
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TABLE I--NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
<TABLE>
<CAPTION>
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1. Title 2. Amount of 3. Ownership Form: 4. Nature of
of Securities Bene- Direct (D) or Indirect Bene-
Security ficially Owned Indirect (I) ficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
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</TABLE>
TABLE II--DERIVATIVE SECURITIES BENEFICIALLY OWNED
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
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1. Title of Derivative 2. Date Exer- 3. Title and Amount of Securities 4. Conversion 5. Ownership 6. Nature of In-
Security (Instr. 4) cisable and Underlying Derivative Security or Form of direct Bene-
Expiration (Instr. 4) Exercise Derivative ficial
Date Price Security: Ownership
(Month/Day/ of Direct (D) (Instr. 5)
Year) Derivative or In-
---------------------------------------------------- Security direct (I)
Date Expira- Amount or (Instr. 5)
Exer- tion Title Number of
cisable Date Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
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Option to buy * * Common Stock 8,908,653 $17.00 D
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* See attached sheet
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</TABLE>
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Explanation of Responses:
*On March 22, 2000, Tuboscope Inc. (the "Issuer"), and Varco International,
Inc. (the "Reporting Person"), entered into an Agreement and Plan of Merger (the
"Merger Agreement") providing for, among other things, the merger of the
Reporting Person with and into the Issuer, with the Issuer being the surviving
corporation in such merger. In connection with the Merger Agreement, the Issuer
and the Reporting Person entered into a stock option agreement, dated as of
March 22, 2000 (the "Tuboscope Stock Option Agreement"), pursuant to which the
Issuer granted to the Reporting Person an irrevocable option (the "Option") to
purchase up to 8,908,653 shares of Common Stock of the Issuer (the "Option
Shares"), at an exercise price per share equal to $17.00. The Option may only be
exercised upon the occurrence of an event the result of which is that the
Reporting Person is entitled to receive the Tuboscope Termination Fee (as such
term is defined in the Merger Agreement) pursuant to Section 8.03(c) of the
Merger Agreement.
By reason of the Tuboscope Stock Option Agreement, the Reporting Person may be
deemed to be the beneficial owner of the Option Shares and, accordingly, may be
deemed to be the beneficial owner of 8,908,653 shares or approximately 16.6% of
the outstanding shares of the Common Stock of the Issuer, based upon the
44,767,104 shares of the Issuer's Common Stock outstanding on March 15, 2000 (as
represented to the Reporting Person by the Issuer in the Merger Agreement) and
giving effect to the exercise of the Option.
Prior to the Option's becoming exercisable the Reporting Person expressly
disclaims any beneficial ownership of the shares of the Issuer's Common Stock
subject to the Option. Neither the filing of this Form 3 nor any of its contents
shall be deemed to constitute an admission that the Reporting Person is the
beneficial owner of any shares of the Issuer's Common Stock subject to the
Option for purposes of Sections 13(d) or 16 of the Securities Exchange Act of
1934, as amended, or for any other purpose and such beneficial ownership is
hereby expressly disclaimed. If the Option were exercised, the Reporting Person
would have the sole right to vote, and the sole right to dispose of, the shares
of the Issuer's Common Stock issued as a result of such exercise.
The foregoing summary of the Tuboscope Stock Option Agreement is qualified in
its entirely by reference to such agreement, which has been filed as Exhibit
10.2 to the Reporting Person's Form 8-K filed on March 24, 2000.
VARCO INTERNATIONAL, INC.
By: /s/ Donald L. Stichler
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Donald L. Stichler
Vice President, Controller-
Treasurer and Secretary 3/31/00
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**Signature of Reporting Person Date
* If the form is filed by more than one reported person, see Instruction
5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
