GE in discussion with Baker Hughes on potential partnerships

Thu Oct 27, 2016 8:13pm EDT
 
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By Alwyn Scott

(Reuters) - General Electric Co (GE.N: Quote) said on Thursday it was in discussion with the No. 3 oilfield services provider Baker Hughes Inc (BHI.N: Quote) on potential partnerships.

"While nothing is concluded, none of these options include an outright purchase," GE said in a statement.

Baker Hughes shares, which had jumped nearly 14 percent in extended trading after the Wall Street Journal had reported that General Electric was in talks to buy the company, pared some gains and were up about 7 percent.

GE shares were down 0.2 percent at $28.56.

The Journal had reported that GE has approached Baker Hughes about a takeover. (on.wsj.com/2eShzj0)

The deal would be large even for GE, roughly double the size of its $13 billion acquisition of power assets from Alstom (ALSO.PA: Quote) last year.

Baker Hughes, which has a market capitalization of $23.1 billion, declined to comment.

GE has approached Baker Hughes to discuss the possibility of an acquisition, according to a person familiar with the matter told Reuters.   Continued...

 
The logo of Down Jones Industrial Average stock market index listed company General Electric is shown at their subsidiary company GE Aviation in Santa Ana, California April 13, 2016.  REUTERS/Mike Blake