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Report: U.S. Department Of Justice Giving Halliburton 'Trouble' Over Proposed Baker Hughes Acquisition

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Halliburton Company (NYSE: HAL)'s $35 billion proposed takeover of Baker Hughes Incorporated (NYSE: BHI) has reached a "breaking point."

The New York Post, citing its "sources," stated that the U.S. Department of Justice is looking for Halliburton to sell additional assets it already pledged to ease the government's concerns. The company has already said it will divest assets that accounted for $7.5 billion in 2013 revenue.

The publication quoted a source who is "part of the negotiations" and said "I believe this ends in a DOJ suit. Another source added that while the business combination is expected to happen, the odds of doing so are "not greater than a 50-50 chance."

Finally, another source told the New York Post that Halliburton is in a position of weakness and potential buyers of its assets are in a "pretty good bargaining position."

Shares of both Halliburton and Baker Hughes showed no trades early Friday morning.

Posted-In: Baker Hughes Department of Justice halliburton Oil & Gas M&ANews Rumors Legal

 

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