Hmmmmm, that would end up being a great ploy by HAL to get BHI to decimate their workforce so they can't properly respond when the "oil crisis" is over and then HAL scoops up the market share that BHI loses. HAL prob thinks that's worth 3.5B and it greatly hampers BHI from being able to take any more market share from HAL. That's the real reason HAL started this deal, BHI was slowly eating away HAL's market share with better tech.
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Deal will fail. Bhi failed to fire any managers but laid off all of its workers. At this point, Hal will be getting a bloated hr/manager/janitor work force who has no idea how to, run tools, build tools, design tools, sale tools, or do their jobs. Why would anyone buy that? That's like buying a Russian bride and going through all the paper work of immigrations just to not get blow jobs, not have sex, not speak English, not have her clean your house, or even know how to make you a sandwich. Essentially Bhi is a typical modern American woman now, worthless.
Halliburton has to pay a $3.5 billion break-up fee if the deal is not consummated, practically providing a floor to the BHI. Regardless of the rumor, the planned merger will proceed pending regulatory's approval. The tentative merger date will be in October, but it could be pushed until January 2016 as the deal is very complex.
If Hal backs out of the deal then they have to pay BHI 3B I believe.
HAL would be a fool to take on the overhead of BHI now. The cost of supporting BHI until the price of oil recovers is more than $3.5B. This is a money losing deal for HAL. HAL could back out and come come back at a much lower stock price.
Jeez. If Hali dont buy us we are dead men walking.
I agree
Wow, I heard about 'revisit the merger', but thought it was just gossip. That would be hilarious, even as one of the affected ones I would get a hell of a laugh if it all fell thru and Hal were forced to eat their words, brilliant. All that chopping and slashing for nought. All that's left is a lean , mean 'fighting' machine consisting of HR and ex-Arthur Anderson accountants, assorted VPs and directors, good luck with all those foam cement jobs, hi res imaging, hi-deviation, hi temp jobs, much of the expertise is on the sidelines, sipping a beer and taking in the view.... Keystone cops will have nothing on this, (you have to be over 50 for that one) ... Blue is gonna crush these f*rs