General Electric in Talks to Buy Baker Hughes

By Dana Mattioli, Kate Linebaugh and Joann S. Lublin 

General Electric Co. is pursuing an acquisition of Baker Hughes Inc., according to people familiar with the matter, a transaction that would be the biggest in the history of the industrial giant and extend its bet on the battered oil industry.

GE has approached the oil-field services company about a takeover, the people said, but details of the talks couldn't be learned, and the talks could fall apart before an agreement is reached.

With a market value of $23 billion, Houston-based Baker Hughes could go for more than $30 billion in a takeover, given the typical premium. GE has a market value of $259 billion.

In 2014, Baker Hughes agreed to sell itself to rival Halliburton Co. for $35 billion, or $78.62 per share. Earlier this year, the Justice Department filed a lawsuit to block the proposed merger, and the deal fell apart.

Baker Hughes shares closed Thursday at $54.55.

--Ted Mann and David Benoit contributed to this article.

Write to Dana Mattioli at [e-mail], Kate Linebaugh at [e-mail] and Joann S. Lublin at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 18:52 ET (22:52 GMT)

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