|
 The merger is widely expected to raise anti-trust concerns and Baker
Hughes shares, at $69.50, were trading well short of the offer of
$80.69 per share, based on Friday's close.
Halliburton shares were down 3 percent at $53.45 premarket.
Halliburton said on Monday that if required, it was ready to divest
businesses that generate up to $7.5 billion in revenue, although it
believed regulators would ask for "significantly less".
Halliburton said the offer was worth $78.62 per Baker Hughes share,
based on Halliburton's closing on Nov. 12, when it was first
disclosed that the companies were in talks.
Under the terms of the deal, Baker Hughes shareholders will get 1.12
Halliburton shares plus $19 in cash for every Baker Hughes shares
held.
On a pro-forma basis the combined company had 2013 revenue of $51.8
billion, more than Schlumberger's $45.3 billion.
The combined company is expected to save nearly $2 billion a year in
costs.
The acquisition will add to Halliburton's cash flow by the end of
the first year after closing, expected in the second half of 2015,
and to earnings by the end of the second year.
Halliburton's Chief Executive, Dave Lesar, will lead the combined
company.
[to top of second column] |
Credit Suisse and BofA Merrill Lynch are Halliburton's financial
advisers, while Goldman, Sachs & Co is advising Baker Hughes.
Baker Botts L.L.P. and Wachtell, Lipton, Rosen & Katz are
Halliburton's legal counsel, while Davis Polk & Wardwell LLP and
Wilmer Cutler Pickering Hale and Dorr LLP are serving Baker Hughes.
(Reporting by Swetha Gopinath in Bangalore; Editing by Savio
D'Souza)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
