SAN DIEGO & HOUSTON,
Nov. 17, 2014 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Baker Hughes Incorporated
(NYSE: BHI) by Halliburton Company (NYSE: HAL). On
November 17, 2014, the two companies
announced the signing of a definitive merger agreement pursuant to
which Halliburton will acquire Baker Hughes. Under the terms
of the agreement, Baker Hughes shareholders will receive
$78.62 for each share of Baker Hughes
common stock.
View this information on the law firm's Shareholder Rights Blog:
http://www.robbinsarroyo.com/shareholders-rights-blog/baker-hughes-inc
Is the Proposed Acquisition Best for Baker Hughes and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Baker Hughes is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $78.62
merger consideration represents a premium of only 31.3% based on
Baker Hughes's closing price on November 14,
2014. This premium is significantly below the median one-day
premium of 38.43% for comparable transactions within the past five
years. Further, the $78.62
merger consideration is significantly below the target prices of
three analysts, including a target price of $90.00 set by an analyst at RS Platou Markets on
July 3, 2014.
On October 16, 2014, Baker Hughes
released its earnings results for its third quarter 2014, reporting
record quarterly earnings. Specifically, the company reported
record revenue of $6.25 billion for
the quarter, up 5% sequentially, and record EBITDA of $1.12 billion, up 3% sequentially. In
addition, Baker Hughes has beat consensus analyst estimates for
both adjusted EPS and sales in three out of its last four
quarters. In commenting on these results, Martin Craighead, Baker Hughes Chairman and
Chief Executive Officer remarked, "Our third quarter results
included record revenue, record free cash flow, and more than a 10%
sequential increase in adjusted earnings…. Our outlook for the near
term remains positive based on increasingly favorable market
conditions in our North American business and recent actions to
increase profitability internationally."
In light of these facts, Robbins Arroyo LLP is examining Baker
Hughes's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Baker Hughes shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Baker Hughes shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP