Baker Hughes (BHI): Creating A Powerhouse - Evercore ISI
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Evercore ISI analyst, James West, reiterated his Hold rating on shares of Baker Hughes (NYSE: BHI) after the company announced it will combine with GE O&G to form a new, publicly-traded entity with GE owning 62.5% of the company and BHI shareholders receiving a $17.50 special dividend per share and 37.5% of the new company.
GE will contribute $7.4 billion to fund the cash dividend to BHI shareholders. Jeff Immelt will serve as Chairman and Lorenzo Simonelli, current President and CEO of GE O&G, will serve as President and CEO of the new company. Martin Craighead will serve as Vice Chairman of the Board. Five of the nine board members will be appointed by GE with the remaining four appointed by public shareholders. The “New” Baker Hughes will have dual headquarters in Houston and London. The transaction is expected to close in mid-2017, pending BHI shareholder approval and regulatory approval.
No change to the price target of $60.
Shares of Baker Hughes closed at $55.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Evercore ISI Remains Bullish on Baker Hughes (BHI) Ahead of Investor Day
- Restoration Hardware (RH) PT Cut to $30 at Cowen
- Jefferies Raises Price Target on Broadcom Ltd. (AVGO) to $210 Following 4Q
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!