Baker Hughes CEO Tells Employees to Stay Focused Amid GE Deal Talks

By Anne Steele 

Baker Hughes Inc. Chief Executive Martin Craighead on Friday sent an email to employees asking them to remain focused in light of reports of a potential merger with General Electric Co.

GE has approached the oil-field-services company about a deal, The Wall Street Journal reported Thursday, but details of the talks couldn't be learned and they could break down before an agreement is reached.

"In light of the potential distractions this might create, I want to clarify that while we have been in discussions with GE, nothing is concluded and there is no guarantee anything will be concluded," Mr. Craighead wrote in the email.

Mr. Craighead said getting distracted by external influences is "counterproductive and makes it more difficult to achieve our business objectives." Mr. Craighead also said the company has a record of informing employees about important business developments.

A GE spokeswoman on Thursday confirmed discussions with Baker Hughes and declined further comment Friday. Baker Hughes declined to comment at the time and the email appeared to be the company's first acknowledgment of the talks.

Shares of Baker Hughes recently rose 6.8% to $58.24 while GE added 2.2% to $29.25.

Houston-based Baker Hughes, which had a market value of $23 billion at Thursday's close, had revenue of $15.7 billion last year. GE, which had a market value of $259 billion, had $16.5 billion in revenue from its oil-and-gas business last year.

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(END) Dow Jones Newswires

October 28, 2016 14:45 ET (18:45 GMT)

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