Imagine trying to sell something where you have no power in negotiating.
Halliburton has to sell drilling/mwd/bits and the company ( entity) has to be a viable competitor.. This is mandated by regulators. To this date, there have been discussions on what can effectively be included in the sell of the divested company. HAL has generally controlledin this because they are the 'owners'. The problem is that, Sperry/DBS can educate the regulators and the prospective buyers on what they need to be a viable business. This effectively gives them the leverage to get what they want from HAL. HAL will have to almost guarantee the success of a competitor. Something that the buyer knows, something Sperry/DBS knows and right now, executives know that they'll be subsidizing their so called divestment for quite some time. Or they pay the penalty
That's one hell of a deal. Who's going to be the first and take one for the TEAM?
Gotta go!
Kelly Down