The acquisition is expected to produce US$75 million in cost savings for Baker Hughes next year and US$150 million in 2011, and add to earnings per share in 2011.
The deal is valued at US$5.5 billion based on Friday’s closing prices. BJ stockholders will receive 0.40035 shares of Baker Hughes and US$2.69 in cash for each share they own.
The deal represents a 16.3 percent premium to BJ’s US$15.43 closing price on Friday.
BJ’s shareholders will have an approximately 27.5 percent stake in Baker Hughes and two BJ services board members will join Baker’s board.
This the first major oil services takeover of the year. After larger oil companies reaped hefty profits from last year’s crude and gas price rally, some analysts predicted that crumbling stock and crude prices would make smaller oil and gas companies potential takeover targets.
RSS