BJ Services Company (NYSE: BJS) is surging on a deal in the oil patch… Baker Hughes Inc. (NYSE: BHI) is acquiring the company for what is supposed to be a 16% premium around $5.5 billion, but in a deal thgat greatly discounts it last year’s highs. The deal is mostly in stock and the BJ Services holders will have ownership of close to 27% of the new combined operation if the holders approve the merger. BJS shares are up 11% at $17.17 on over 3 million shares of common stock at 8:54 AM EST. At the same time, Baker Hughes is trading down 3.75% at $36.66 on about 800,000 shares. Don’t bee too shocked if there are moves above the arbitrage spread here as many will say that the deal undervalues the company even before synergies and savings are taken into consideration.
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