Baker Hughes Says Halliburton Will Seek to Replace Board

November 14:

Halliburton Co. (HAL) plans to name a slate of board members atBaker Hughes Inc. (BHI) after talks to take over the rival failed.

Halliburton intends to nominate candidates to replace the entire board of directors of Baker Hughes at an April 2015 annual meeting, Baker Hughes said in a statement today.

Baker Hughes, which has a market value of about $26 billion, said yesterday that the two companies were in talks. Negotiations stalled today following reports of the deal, with the companies still haggling over price and asset sale concerns, people with knowledge of the matter said.

“The nominations followed discussions between the parties regarding a potential business combination transaction, and Halliburton’s refusal to improve its first and only value proposal,” Baker Hughes said in the statement.

Emily Mir, a spokeswoman for Halliburton, didn't immediately return phone and e-mail messages left after hours seeking comment.

Halliburton, the world’s second-largest provider of oilfield services, would eliminate one of its chief rivals in the merger, expanding its business portfolio and market clout at a time when falling oil prices have plunged the industry into a downturn. The combination with No. 3 Baker Hughes would create a company a little more than half the size of Schlumberger Ltd. (SLB)

Any deal is expected to draw federal antitrust scrutiny, especially where the two companies’ businesses overlap most in North America.

Source: www.bloomberg.com/news/2014-11-15/baker-hughes-says-halliburton-will-seek-to-replace-board.html?