If the deal doesn't go through Baker stock will be lucky to stay above it's true value ..$12
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I don't care if they lay me off either, because I told, I told Bill that if they move my desk one more time, then, then I'm, I'm quitting, I'm going to quit. And, and I told Don too, because they've moved my desk four times already this year, and I used to be over by the window, and I could see the squirrels, and they were merry, but then, they switched from the Swingline to the Boston stapler, but I kept my Swingline stapler because it didn't bind up as much, and I kept the staples for the Swingline stapler and it's not okay because if they take my stapler then I'll set the building on fire...
So few free-thinkers left in this world. *sigh
Why, exactly, should BHI stock tank if the takeover falls through? Baker has made minimal divestments, and they get a $3.5B cash infusion from HAL. This is enough cash to replenish talent and make some acquisitions of their own.
Now let's imagine the deal doesn't go through - who stands to lose? HAL has already started divesting and cutting management in prep for the takeover. It makes sense that their stock should drop. Second, the executives of both companies would lose face and large payouts - both exec teams very much want the deal to go through.
So why would all the talking heads in the finance/investment world want you to think the stock would tank if the deal dies? 1. They're friends with the execs mentioned above. 2. They're planning to short BHI when the takeover fails and they need Joe Public to freak out and sell his shares. 3. When BHI rebounds strongly from said cash injection; and it will; they'll make a killing
The only stock that will tank for any significant amount of time is HAL...
BHI will be fine. May experience some initial drop in stock prices. But with 3.5 billion to come their way, in a market where profits are slim-none...the power will shift. HAL WILL NOT ALLOW BHI TO BE RELEASED, only to be potentially join another partner & forge a formidable adversary for HAL. (Que dramatic music)
If the deal doesn't go through, can Baker Hughes really stay afloat? It's so scary for a lot of us still there, recently gone and or holding stock!
199047,... Why do I feel I need a shower, after reading that shit you wrote?
OK, you do not have to have a finance degree to figure this out
9047 - copied from oilpro..
I, myself, as a 25 year employee of BHI and personally seen a lot of changes/name changes, feel that if this buy-out does not go through, it will hurt our company.
However, the fact that the agreement was a 10% penalty to be paid by HLB, seems to be the right thing to do. The administrative costs for BHI to go through such painful woes, would be over-whelming if this would not be the case. I remember back in the 90's when we were threatened to be purchased by SLB, BHI took evasive actions to protect our company, but apparently our leaders did not see that coming with the HLB buyout, which caught them by surprise.
For the most, today I am still confused why HLB would even consider doing such a thing as purchasing BHI. I can reason with some points, but basically, we are in direct competition with each other. I also agree with Arthur, on his comment, about the customers preferring BHI and not HLB, and finding another service company if the buy-out goes through
I have been employed with Baker since 1987, which I personally told colleagues of mine that Baker will have to buy Teleco and Eastman Christensen in order to stay on top of the drilling market. But myself, I never expected HLB to go to this extreme. There is so much tension with our group that it needs to move forward, whether it is a deal or not, we need to go back to doing business like we used to.
I feel that Management is working so hard to save their and our jobs that they are actually hurting our group. This may cost me my job, but I have to say what I have to say....