Goldman Sachs Advising Baker Hughes, Credit Suisse With Halliburton on Talks

HOUSTON (TheStreet) -- Goldman Sachs (GS) is advising Baker Hughes Inc. (BHI) and Credit Suisse (CS) is assisting Halliburton Co. (HAL) on Halliburton's negotiations to purchase Baker Hughes, a source said. Suhail Sikhtian is leading the team from Goldman while Greg Weinberger is doing the same for Credit Suisse, the source added.

Bankers at Goldman and Credit Suisse didn't respond to requests for comment. Baker Hughes wouldn't comment and Halliburton didn't respond to requests for comment.

Baker Hughes in a statement Thursday confirmed possible merger talks with Halliburton after The Wall Street Journal reported that negotiations had taken place between the two companies. The Journal said that talks were moving quickly and that an agreement could be inked soon. The report didn't mention a price.

Baker Hughes' stock jumped 15.24% on the news to close at $58.75 while Halliburton's added 1.05% to close at $53.79.

A deal between the second and third largest players in the oil services industry -- which has been hit hard by sliding oil prices -- would create a giant with a $70 billion market capitalization but also attract antitrust scrutiny. Indeed, an investment banking source said a deal seems unlikely, given regulatory hurdles and the mix of businesses.

Schlumberger Ltd. (SLB) is the number-one player in the industry with a $122 billion market capitalization.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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