Oil Services ETF Could Rebalance On Smith Takeover
The Oil Services HOLDRs ETF (AMEX: OIH), the ETF that is home to many of the largest oil services stocks, may see some changes as Schlumberger (NYSE: SLB) acquires Smith International (NYSE: SII).
Schlumberger, the world's largest provicer of oilfield services, announced plans to acquire Texas-based Smith International for $11 billion in stock on Sunday. Schlumberger was OIH's second-largest holding as of Friday's close with 11.3% of the ETF's weight. According to the HOLDRs Web site, Smith is the ETF tenth-largest constituent, accounting for 4.85% of OIH's weight.
Transocean (NYSE: RIG) is OIH's largest constituent, accounting for over 15% of the ETF's weight.
BJ Services (NYSE: BJS), OIH's ninth-largest holding at 4.97% is another member of the ETF that will eventually be replaced as Baker Hughes (NYSE: BHI) is acquiring its smaller rival in a deal that is close to completion. Baker Hughes is OIH's number four holding at 8.25%.
