Halliburton had initially aimed to close the deal by this year’s end, but it looks like the deal will be pushed into next year. Since announcing the merger in July 2014, Halliburton's stock has crash more than 50% and that has made survival difficult for the oil service provider. As compared to last year’s levels, US oil production has dropped significantly. Hence, consolidation will help both, Halliburton and Baker Hughes to take advantage from economies of scale and lower average costs. Amongst a number of benefits to be derived from the merger, annual cost synergies are estimated to be $2 billion. If the deal won't go through, Halliburton CEO Dave Lesar will loose his job and Baker Hughes CEO Martin Craighead will loose his $28 million merger incentive bonus.
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there is a woman under me
Martin craighead he's the man that sank Halliburton by by suckers. We had no intention of letting you knobs take over the baker boys we have picked up major orders while you clowns drown in your own shit
Look for both Halliburton /Baker stock to take a big drop.
On Nov 27 Halliburton Co has refiled a request for EU antitrust approval of its $35 billion bid for smaller rival Baker Hughes, four months after regulators rejected an earlier application because of insufficient data. The European Commission will decide by Jan. 12 whether to clear the deal or open a full investigation, according to a filing on its website. Now the deal is pushed back until at least Jan 12, 2016.
Huh? 'Splain, please.
Watch what happens December 16th
Pretty interesting dynamics, here,... Halliburton (partially based upon a Bidness Etc release, 3 hours ago) seems prepared to flagellate itself by selling upwards of $7.5B of additional assets, in order to convince the DOJ to approve the deal. As of right now, both HAL and BHI have slashed jobs, closed facilities, and pretty much "battened the hatches" in order to weather The Storm. Both are weakened and both are, arguably, less able to meet their customer's expectations than they were, mere months ago. (I say that, because, even though both have retained some degree of their core competencies, the social fabric of any company is weakened when layoffs, to the degree recently witnessed, take place,... confidences are threatened, loyalty becomes negotiable, and quality must suffer, in turn.) If the deal does NOT go through: Two "ships" in a wave-tossed sea, both having suffered battle damage, and no safe port in sight. If the deal DOES go through: One "ship" will have survived, forced to assimilate an "enemy" crew, assess it's losses and it's capabilities, but, more importantly,... it will have to convince many OTHERS of it's "sea worthiness", post-merger. And, through all of THAT,... a much larger, more capable, more enduring "ship" awaits, ready to "do battle", just over the horizon. It's going to be a real challenge, no matter WHICH way this thing goes.
If the mega merger deal with Halliburton falls, Baker Hughes will receive a big windfall. Most likely Baker Hughes will be on a shopping spree for other smaller oil services provider.
Let the Egyptian donkeys run it. Hee Haw
And what happens to Baker Hughes - reorganized, close the doors, another buyer waiting?