NEW YORK (TheStreet) -- Shares of Baker Hughes (BHI) are slightly lower by 0.05% to $65.20 in midday trading Tuesday, as law firm Levi & Korsinsky announced an investigation into the oilfield services company for possible breaches of fiduciary duty and other violations of state law in connection with its sale to Halliburton (HAL) .
The investigation will look into whether the board of directors of Baker Hughes breached their fiduciary duties to stockholders by not adequately shopping the company before agreeing to the deal with Halliburton.
Under the terms of the merger deal, Baker Hughes shareholders will receive 1.12 shares of Halliburton common stock and $19 cash for each share of Baker Hughes stock.
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Separately, TheStreet Ratings team rates BAKER HUGHES INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BAKER HUGHES INC (BHI) a BUY. This is driven by several positive factors, 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, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."