Dow Jones: GE in talks to buy Baker Hughes in potential $30B-plus deal
Baker Hughes (NYSE:BHI) +18.5% AH following a Dow Jones report that General Electric (NYSE:GE) is in talks to buy the company.
With a $23B market cap, BHI could go for more than $30B in a takeover, given the typical premium, according to the report, which notes that a deal would rank as GE's biggest ever.
GE reportedly approached BHI about a takeover, but no other details are known.
Actually GE is just being smarter than Uncle Dave on how to do the deal. GE would spin off its O&G assets to merge with BHI and form a new company. GE would then own a majority stake in the new entity. The effect is the same as an outright purchase: a new OFS powerhouse would be created that could immediately compete with HAL and SLB.
Aye
GE spokesman stated that it is meant to be a partnership between GE and Baker Hughes. GE is not looking to acquire Baker Hughes.