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Baker Hughes CEO: “Halliburton is still our competition”

The pending $34.6 billion merger between oil giants Baker Hughes and Halliburton now has a date set for its special meeting in which the shareholders will vote to approve or disapprove the monumental merger. The date for that meeting is set for March 27 at 9 a.m., according to the Houston Business Journal.

The proposed merger was first announced in November, 2014 when Halliburton announced it would be acquiring fellow oil services giant Baker Hughes through its Red Tiger LLC subsidiary. The merger, if approved, would give Baker Hughes stockholders 1.12 shares of Halliburton common stock and $19 in cash for each share of Baker Hughes common stock held. Halliburton is expected to issue up to approximately 490 million shares of its common stock to Baker Hughes shareholders. Upon completion of the merger, Halliburton stockholders immediately prior to the merger will own approximately 63 percent of Halliburton’s outstanding common stock and former Baker Hughes stockholders will own approximately 37 percent of Halliburton’s outstanding common stock.

As news broke about the date of the shareholders meeting, Baker Hughes President and CEO Martin Craighead released an internal memo to his employees saying “remember that Halliburton remains our competitor until the deal closes.” The memo also touched on the recent hardships the company has had to overcome as the company has had to scale back its workforce due to low oil prices.

Martin Craighead added in his memo:

“The overriding objective of the integration planning is to do what will be best for the combined business. More than ever, I believe this combination offers the potential to compete more effectively in a rapidly changing services industry than either company could on its own. While I understand the transaction adds a layer of uncertainty, I am confident in the benefits for shareholders and customers, and long-term opportunities for employees.”

You can read the full story on Craighead’s internal memo by clicking here.

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