HAL made an SEC filing today which they posted dealing with the up to $10.8 B worth of bonds they intend to sell to pay for the cash portion of the deal. There's a section that talks about risks. It says the termination fee might (my emphasis -might) require HAL to pay BHI a termination fee if the deal does not go through and it goes onto say that if the deal does not go through because regulatory agency blocks it, HAL might be required to pay BHI $ 3.5 B. Anybody else ever hear of anything other than $ 3.5 B before now? To all of you who keep saying it's a done deal, saying it's so don't make it so. We'll all know, one way or another, when we know.
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If DOJ cancels deal 3.5 billion. If HAL cancels 1.5 billion. If BHI cancels BHI pal HAL 1.0 billion. Since the beginning
When they take on the BHI debt and pending lawsuits, HAL heads will start to roll. Shareholders will demand profits or at least minimum losses.
How much do you think baker is worth now? 15b? Maybe less?
Until now they have always mentioned a $3.5 B termination fee. In this bonds prospectus they talk about a termination fee of $ 1.5 B unless the deal does not go through because they get blocked by a regulatory agency, then it's $ 3.5 B. I don't know why you are confused about the point I'm trying to make.
What are you confused about? It has always been known that if the deal doesn't go through, HAL will pay BHI. Though, it's not that easy. If the deal doesn't go through for whatever reason, HAL can appeal and put the whole ordeal into limbo for a while basically. Either way, it is highly unlikely BHI would get the $3.5B soon. I am not sure what you are questioning though? Are you confused as to what the other $7.3B is being used for? Part of them are "incase" the deal doesn't go through but the rest are for other agendas. Read http://www.marketwatch.com/story/halliburton-to-issue-75-billion-of-senior-notes-2015-11-05
All I know for sure is Baker right now isn't worth what Hal offered. I really think the merger hasn't been dropped because of pride. Hal went all in and now looks silly. They even threatened to forcefully take over the board. Baker value drops every day. Even if it goes through, Hal is going to have to eat a huge loss. Hal employees think they're safe......Haha! Right now it's all wishful thinking. A merger being held together on a wing and a prayer.