NEW YORK (TheStreet) -- Bloomberg deals reporter Ed Hammond appeared on Friday morning's "Bloomberg Daybreak: Americas" to discuss the partnership talks between General Electric (GE) - Get Report and Baker Hughes (BHI). BloombergTV's Alix Steel began by noting that regulators blocked a deal between Baker Hughes and Halliburton (HAL) and questioned what the benefit of a deal would be to GE.
"GE has come out very quickly and said one thing that they're not looking at here is a full scale tie-up with the company," Hammond said. "So it's more along the lines of partnerships, maybe some kind of sharing of assets, or some way of working together that doesn't involve GE outright buying Baker Hughes."
Were GE to pursue a full merger with Baker Hughes the difference between the that and the failed Halliburton deal would be that it is a lesser player in the oilfield industry, whereas a combination between Halliburton and Baker Hughes was seen as too high risk with too many antitrust issues, Hammond continued.
Looking at mergers as a whole, Steel noted that regulators have become stricter and questioned Hammond as to if this will begin a trend of asset sale based partnerships rather than full scale takeovers.
"I think on the largest deals that probably is going to be something we see play out," Hammond responded. "We saw so many deals and we have continued to see so many deals get destroyed by regulators in the cycle. And particularly the biggest deals, they seem to come out very, very quick."
Regulators will either block the deal in court or make life "so unpleasant" that companies simply abandon the transactions, Hammond said.
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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. TheStreet Ratings has this to say about the recommendation:
We rate GENERAL ELECTRIC CO as a Buy with a ratings score of B-. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: GE