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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*
Tuboscope Inc.
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(Last) (First) (Middle)
2835 Holmes Road
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(Street)
Houston TX 77051
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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) 76-0252850
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4. Issuer Name and Ticker or Trading Symbol Varco International, Inc. VRC
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
___ Director ___ Officer X 10% Owner ___ Other
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(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
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____ Form filed by More than One Reporting Person
TABLE I--NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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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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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 See attached Common 13,023,985 $14.56 D
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sheet for Stock
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specific information
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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: TUBOSCOPE INC.
See attached
By: /s/ James F. Maroney, III
James F. Maroney, III
Vice President, Secretary and
General Counsel 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.
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On March 22, 2000, Varco International, Inc. (the "Issuer") and Tuboscope
Inc. (the "Reporting Person") entered into an Agreement and Plan of Merger (the
"Merger Agreement") providing for, among other things, the merger of the Issuer
with and into the Reporting Person, with the Reporting Person being the
surviving corporation in the 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 "Varco Stock Option Agreement"), pursuant to which the
Issuer granted to the Reporting Person an irrevocable option (the "Option") to
purchase up to 13,023,985 shares of Common Stock of the Issuer (the "Option
Shares") at an exercise price of $14.56 per share. 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 Varco Termination Fee (as such term
is defined in the Merger Agreement) pursuant to Section 8.03(e) of the Merger
Agreement.
By reason of the Varco 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 13,023,985 shares (or approximately 16.6%
of the outstanding shares) of Common Stock of the Issuer, based upon the
65,447,165 shares of Issuer 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 Option.
Prior to such time, if any, that the Option becomes exercisable, the
Reporting Person expressly disclaims any beneficial ownership of the Option
Shares. 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 Option Shares for purposes of Section 13(d) or 16 of the Securities
Exchange Act of 1934 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 Option
Shares issued as a result of such exercise, subject to certain restrictions on
disposition of such shares.
The foregoing summary of the Merger Agreement and the Varco Stock Option
Agreement is qualified in its entirety by reference to such agreements, which
have been filed as Exhibits 2.1 and 10.2, respectively, to the Reporting
Person's Form 8-K filed with the Securities and Exchange Commission on March 24,
2000.
