Baker Hughes Says In Potential Deal Talks With Halliburton

Oilfield-services provider Baker Hughes says it is talks with rival Halliburton about a potential merger. The deal talk between the two Houston-based companies comes during a drop in oil prices that has hurt both companies' stock price. Combined, Halliburton and Baker Hughes would be slightly larger by revenue than Schlumberger, and hold an even larger advantage in North America, where hydraulic fracturing, or fracking, is a big business for the oilfield companies. A combination could give Halliburton and Baker Hughes more power to charge energy companies higher prices, particularly in North America. Baker Hughes shares closed up 15 percent at $58.75. They added another 3 percent in extended trading after the company confirmed the deal talks. Halliburton gained 56 cents, or about 1 percent, to close at $53.79 and tacked on another 68 cents in after-hours trading.