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Halliburton and Baker Hughes Potential Merger


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I have never invested in anything resembling a merger/arbitrage opportunity and would appreciate a little clarity.  The link below provides an article from the New York Times summarizing the terms:




Under the terms of the transaction, Halliburton will pay 1.12 of its shares and $19 in cash for each Baker Hughes share. That offer was valued at about $78.62 a share on Nov. 12, the day before news of their discussions became public.


I have read that one potential issue is anti-trust.  However, I am really wondering how this plays out based on the falling share price of both companies.  BHI is selling at about $55/share which is about a 26% discount from the $78.62 shown above.  Can this deal be consummated based on where these companies are trading now.  I have a value of about $62 based on:


Halliburton price per share $38.50*1.12=$43.12

$19 in Cash






Feel free to point out anything I am missing, thanks in advance for the help.



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