Grey Wolf deal has $64 mln break-up fee

HOUSTON, Aug 27 (Reuters) - Onshore oil and gas drilling contractor Grey Wolf Inc (GW.A) has to pay $64 million if it terminates its agreement to be acquired by Precision Drilling Trust (PD_u.TO), a regulatory filing showed on Wednesday.

On Monday, Canada's Precision Drilling said it will buy Grey Wolf in a friendly deal valued at about $2 billion in cash and stock.

Precision, which operates about a quarter of Canada's land rigs and is that country's largest oil and gas rig operator, has been pursuing Grey Wolf as a means to accelerate its U.S. expansion without flooding the market with new rigs. (Reporting by Anna Driver in Houston; Editing by Phil Berlowitz)