Could the pending acquisition be a HAL masterstroke to eliminate BHI or make them irrelevant? HAL might truly not be interested in whether the deal goes through or falls apart. But through this acquisition proposal, they made BHI irrelevant in the oilfield services sector.
Just wondering!!!
Eightball your a glue pot what a load of rubbish.
See yer foreman
The merge will either fail or BHI will go into receivership before April..!
If the merge does fail HAL doesn't have $3.5 billion, so will have to sell a product line or two, but at $30/bbl no one will buy
..a massive legal case will ensue with both HAL and BHI being broken up into their original constituent companies..
If the merge does go ahead the new company will be a huge risk for customers and also be so weak for the first 2 years that SLB will clean up..
Here endeth the forecast for 2016..!!
What a load of twaddle.bakerhughes is here to stay.theres far to much rubbish going about baker being bankrupt utter nonsense our CEO knows what he's doing trust in Martin the good times will be back
Looking forward to 2016 the baker family love a challenge.
Well folks have a very happy Christmas and a very drunking new year
All the best see yer foreman
Shareholders should not have voted for this merger.
Except for that guy.
$3.5B, can buy a lot of stinky Indian curry.
Just love a good conspiracey theory. The only problem is, with the exception of the Illuminati, people just aren't that smart. BHI just managed this badly. Too bad because BHI and HAL have a ton of really good people.
Sperry is not inferior to inteq. Sperry has a better nmr tool, it has tools rated to 200C. The only thing inteq has that's better is a cheaper RSS.
Sperry makes a lot of money for Hal but has suffered through lack of investment over the past decade.
Appreciate the debate. That recent link simply cites the Bloomberg story regarding BHI's viability. BHI took a beating because of their US exposure. Things can't get much worse in the US, but internationally they can get a lot worse for Hal.
http://www.upi.com/Business_News/Energy-Industry/2015/07/06/Baker-Hughes-wins-Johan-Sverdrup-contract/6201436175224/
It's stories like this that creep up in the news. And Halliburton ain't winning the overseas contracts.
The 3.5 billion would take BHI five years to make in profit during good years. Hal needs this more BHI, HAL is having a harder time winning multi-year offshore drilling contracts.
Another article questioning BHI sustainability in case of failed merger -
http://www.bidnessetc.com/59657-will-baker-hughes-incorporated-survive-if-halliburton-company-merger-fails/
IF MERGER
{ // NIGHTMARE FOR BOTH HAL, BHI AND GE
HAL = HAL + BHI - HAL(DIVEST) - BHI(DIVEST) - COST OF MERGER + 7.5B DEBT (20B TOTAL)
GE = GE + HAL(DIVEST) + BHI(DIVEST)
}
ELSE { // HAL IS A WEAKENED COMPANY AND GE PICKS UP BHI WITH STRONG BALANCE SHEET
HAL = HAL - 3.5B - COST OF FAILED MERGER
GE = GE + BHI + 3.5B
// SLB 1ST, HAL AND GE TIED FOR 2ND
}
This is what I know, these service providers are trying to sell a package of services for one project. (Drill bits, mud, directional drilling/LWD, cementing, wireline) Particulary the oversea offshore work.
In that regard, Halliburton is losing market share big time, Sperry is so inferior to Inteq, that Hal is losing the overseas off shore work handily.
The 3.5 billion strengthens BHI financial position. That is worth over %17 of market value of Baker.
Baker is hurting more in the US. But outside the US, regarding offshore drilling, Halliburton is hurting. Baker can't lose much more revenue that it has lost in the past year, but Hal has a lot to lose in the offshore world moving forward.
THE DEAL WILL NOT HAPPEN. HAL WILL SAVE 33.5 B BY PAYING 3.5 B. BAKERS TRUSTEES AND A FEW OTHERS WILL GET RICHER, BUT BAKER IS DONE.
Read this article from Bloomberg:
http://www.bloomberg.com/news/articles/2015-12-17/baker-hughes-stands-to-suffer-most-if-halliburton-deal-scuttled
Even with the penalty in play, BHI would end up losing their value and HAL would easily recover the penalty by gaining from BHI's lost revenue. In the long run, HAL would stand to gain with one less competitor.
BS. Are you the jewel in the BOD crown?
Is this a serious question?
Halliburton's $3.5 billion dollar penalty to be awarded to BHI is an incentive enough.
Don't talk so much shit