Report: Halliburton Using 'Hail Mary' To Save Baker Hughes Mega-Deal

Halliburton Company HAL's proposed merger with Baker Hughes Incorporated BHI isn't exactly proceeding according to plan due to regulatory scrutiny. The Department of Justice hasn't yet made a decision in favor or against the merger. Antitrust officials are also concerned of the competitive implications of combining the second and third largest oil-field service firms. According to a report by the New York Post, Halliburton's top executives are making a "last-ditch bid," or a "hail mary" to appease the necessary regulatory bodies and proceed with a merger. The New York Post, citing "two sources," reported that Halliburton could be forced to pay a $3.5 billion break-up fee if the deal doesn't get approved. Meanwhile, Halliburton is finding it difficult to implement a request by regulators to divest some of its assets that contributed $10 billion in revenue. The publication added that Halliburton is having difficulty in finding a buyer for its assets as a potential buyer, Weatherford International Plc WFT is "out of the process." Finally, the New York Post added that Baker Hughes has the option to walk away from the deal at the end of April, and its sources are suggesting the company may do so to collect the "sizable" break-up fee if the regulators do not finalize a deal soon. Shares of Halliburton were trading lower by 0.03 percent ahead of Monday's market open while shares of Baker Hughes were lower by more than 2 percent.