Baker Hughes to Buy BJ Services

posted: 163 DAYS 3 HOURS AGO

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HOUSTON (Aug. 31) - Oilfield services company Baker Hughes says it will buy BJ Services in a cash-and-stock deal valued at $5.5 billion.

The acquisition is expected to produce $75 million in cost savings for Baker Hughes in 2010 and $150 million in 2011, and add to earnings per share in 2011.

BJ stockholders will receive 0.40035 shares of Baker Hughes and $2.69 in cash for each share they own. The deal represents a 16.3 percent premium to BJ's $15.43 Friday closing stock price, the companies said Monday.

BJ's shareholders will have an approximately 27.5 percent stake in Baker Hughes once the acquisition closes, and two BJ services board members will join Baker's board.

The acquisition, which has approval from both companies' boards, may close by year's end.

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2009-08-31 06:31:09