Halliburton to buy Baker Hughes

  • By Rashah McChesney
  • Monday, November 17, 2014 1:38pm
  • News

After nearly a month of negotiations, Houston-based Baker Hughes on Monday announced its sale to Halliburton Company in a deal worth about $34.6 billion.

Halliburton made an unsolicited proposal to Baker Hughes on Oct. 13 to acquire all of the outstanding shares of Baker Hughes — the discussions over a possible merger took several weeks to complete, according to a Baker Hughes Nov. 14 media release.

 The negotiations were far from friendly. Baker Hughes made a counter-offer on its own value, Halliburton refused to increase its first offer and sent notice to Baker Hughes that it would be nominating candidates to replace the entire Baker Hughes board of directors during the company’s annual April meeting.

“Baker Hughes considers the notice to be an attempt by Halliburton to pressure the Baker Hughes board into accepting a transaction with Halliburton on Halliburton’s term,” according to the Nov. 14 release.

Members of Baker Hughes’ board were concerned with several portions of Halliburton’s original proposal to buy the company — including that the offer was not high enough and therefore not in the best interests of stockholders at Baker Hughes and that the merger could have potential anti-trust implications that had not been adequately addressed.

“We continue to believe in the strong future of Baker Hughes and, at the appropriate value level, would share your excitement about the possibility of combining Baker Hughes and Halliburton for the benefit of our stockholders,” wrote company Baker Hughes Chairman and Chief Executive Officer, Martin Craighead in a Nov. 12 email to Halliburton Chairman of the Board and Chief Executive Officer David Lesar.

The agreement has since been unanimously approved by both companies’ Boards of Directors, according to a media release.

The combined company will have more than 136,000 employees and operations in about 80 countries worldwide, according to the release.

Under the terms of the agreement, stockholders of Baker Hughes will receive an exchange ration of 1.12 shares in Halliburton plus $19 cash. Halliburton will finance the transaction with cash on hand and debt-financing, according to the media release.

Stockholders from each company must approve the transaction and tehre are several regulatory approvals and closing conditions needed before the merger can be completed — Halliburton has agreed to pay a fee of $3.5 billion if the transaction is cancelled due to the company failing to obtain necessary antitrust approvals.

The transaction could be completed by 2015, according to the release.

Currently, Baker Hughes employes more than 200 employees in Alaska according to its website.

Reach Rashah McChesney at rashah.mcchesney@peninsulaclarion.com

 

More in News

Rep. Justin Ruffridge, a Soldotna Republican who co-chairs the House Education Committee, speaks in favor overriding a veto of Senate Bill 140 during floor debate of a joint session of the Alaska State Legislature on Monday. (Mark Sabbatini/Juneau Empire)
By 1 vote, lawmakers sustain Dunleavy veto of education bill

The bipartisan bill included $680 increase to per-student funding

The Sterling Highway crosses the Kenai River near the Russian River Campground on March 15, 2020, near Cooper Landing, Alaska. (Jeff Helminiak/Peninsula Clarion)
Russian River Campground closed for construction

The campground is expected to reopen on June 2

A man fishes in the Kenai River on July 16, 2018, in Soldotna, Alaska. (Peninsula Clarion/file)
Fish and Game announces series of closures and restrictions for king salmon fisheries

Cook Inlet king salmon stocks are experiencing a prolonged period of poor productivity, the department said

Montessori materials sit on shelves in a classroom at Soldotna Montessori Charter School on Tuesday, Sept. 20, 2022 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Education debate draws state attention to peninsula charter schools

Dunleavy would like to see a shift of authority over charter school approvals from local school districts to the state

The Nikiski Senior Center stands under sunlight in Nikiski, Alaska, on Thursday, March 14, 2024. (Jake Dye/Peninsula Clarion)
Support available for community caregivers

Nikiski Senior Center hosts relaunched Kenai Peninsula Family Caregiver Support Program

Flags flank the entrance to Gov. Mike Dunleavy’s office on Thursday, March 14, 2024, in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Dunleavy vetoes bipartisan education bill

Senate Bill 140 passed the House by a vote of 38-2 and the Senate by a vote of 18-1 last month

The Alaska State Capitol on Friday, March 1, 2024, in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
House passes bill altering wording of sex crimes against children

The bill is sponsored by Rep. Sarah Vance, R-Homer

Ben Meyer and Brandon Drzazgowski present to the Soldotna and Kenai Chambers of Commerce at the Soldotna Regional Sports Complex in Soldotna, Alaska, on Wednesday, March 13, 2024. (Jake Dye/Peninsula Clarion)
Kenai Watershed Forum gives update on streambank restoration

The watershed forum and other organizations are working to repair habitat and mitigate erosion

The entrance to the Kenai Police Department, as seen in Kenai, Alaska, on April 1, 2020. (Photo by Brian Mazurek/Peninsula Clarion)
Kenai resident arrested on charges of arson

Kenai Police and Kenai Fire Department responded to a structure fire near Mountain View Elementary

Most Read