Baker Hughes Lays Out Cost Cuts, Buybacks After Halliburton Deal Dies
May 02 2016 - 8:03AM
Dow Jones News
By Austen Hufford
Baker Hughes Inc. laid out a plan to cut costs and buy back
stock and debt, outlining its path forward a day after its planned
merger with Halliburton Co. was scrapped.
Baker Hughes said it would cut $500 million of costs and weigh a
restructuring of its business, while buying back $1.5 billion of
shares and $1 billion of debt. The funds for the buybacks will come
from the $3.5 billion breakup fee Baker Hughes got from Halliburton
as the deal was called off.
On Sunday, Halliburton and Baker Hughes walked away from their
merger, once valued at nearly $35 billion, after regulators on
several continents claimed it would hurt competition in the
oil-field services business.
As part of the cost-cutting efforts, the company is "taking
immediate steps to remove significant costs that were retained in
compliance with the former merger agreement" and is "evaluating
broader structural changes" to further reduce costs and improve
efficiency.
Baker Hughes also said it intends to refinance its $2.5 billion
credit facility, which expires in September.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
May 02, 2016 07:48 ET (11:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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