Baker Hughes shareholders do maths over GE deal

General Electric's plan to merge its oil and gas division with Baker Hughes should be a boon for the oilfield services company amid testing times for the sector. But Baker Hughes shareholders may need some convincing

While global oil and gas M&A activity remains lacklustre one of the world's largest conglomerates is bucking the trend by planning to merge its oil and gas division with oilfield services provider Baker Hughes. If the $32bn deal, which is expected to close next year, goes ahead General Electric (GE) will take a 62.5% stake in Baker Hughes, paying $7.4bn to fund a one-time cash dividend of $17.50 per share to the oilfield services firm's existing shareholders. Baker Hughes, which will retain the remaining 37.5% share, will become the world's second largest oilfield equipment and services firm. Schlumberger remains the largest, in terms of market capitalisation, while Halliburton will slip