Baker Hughes and Halliburton

Angeline Sedita: Wall Street analysts said Halliburton should be in better shape than Baker Hughes but praised Baker Hughes’ plan to cut annual costs by some $500 million in an oversupplied market while repurchasing shares. equates to meaningful upside potential to earnings estimates in 2016 and 2017 for Baker Hughes, UBS analyst Angeline Sedita said in a note to clients, according to Euro News. Baker Hughes said proceeds from a $3.5 billion breakup fee from Halliburton would fund a $1.5 billion share buyback and the repayment of $1 billion of debt. Both had hoped the merger would help them weather the worst oil price crash in a generation, which has caused hundreds of thousands of layoffs across the industry. Shares of Halliburton rose 2.6 percent to $42.36 on Monday, while Baker Hughes fell 2.8 percent to $47.04. Regulators in the United States and overseas frowned upon the transaction, calling it a threat to competition and innovation. Baker Hughes has faced employee turnover and cutbacks ever since Halliburton announced plans 18 months ago to buy it in a deal first valued at $35 billion. (news.financializer.com). As reported in the news.