NEW YORK (TheStreet) -- Shares of Baker Hughes (BHI)  were jumping 8.85% to $59.38 in pre-market trading on Friday after General Electric (GE) confirmed that it is in talks of partnering with oilfield services provider.

The Wall StreetJournal first reported late Thursday that GE was exploring a purchase of Houston-based Baker Hughes.

But the digitial industrial company said in a statement yesterday that it is in discussions with Baker Hughes about "potential partnerships," not an "outright purchase."

If talks continue, GE could decide to spin the combined businesses into a new publicly traded company, the Journal noted. 

In 2014, Baker Hughes agreed to sell itself to oil and natural gas company Halliburton (HAL) for $34.6 billion, but the deal later dissolved after the DOJ filed a lawsuit to block the planned merger. 

Shares of GE were higher in pre-market trading on Friday.

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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

The team rates Baker Hughes as a Sell with a ratings score of D+. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

You can view the full analysis from the report here: BHI

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