Baker Hughes Inc. (BHI) and BJ Services Co. (BJS) adjourned
their special stockholders meetings on their proposed merger until
the end of the month as U.S. regulatory approval is still being
awaited.
Baker Hughes shares were down 4.4% at $47.19 while BJ fell 3.9%
to $21.49.
The oilfield-services companies have all the required foreign
approvals for their combination but haven't received antitrust
clearance from the U.S. Justice Department, which has raised issues
regarding the overlap between some of their Gulf of Mexico
businesses.
Friday, the companies said they're making progress toward
obtaining it and reiterated they don't expect any resolution to be
material to the business or financial performance of the combined
company following the merger.
Baker Hughes' $6.6 billion acquisition of BJ is expected to make
Baker Hughes a more full-service company. BJ's pressure-pumping
business is a crucial component in developing service-intensive
shale natural gas fields, which are credited with boosting output
in the U.S.
Though the number of U.S. rigs online has been strengthening, an
abundant supply of natural gas and weak demand continues to keep
prices low
Baker Hughes in January reported better-than-expected
fourth-quarter earnings as oil and gas activity picked up from the
prior quarter, though profit still tumbled 81% owing to weak
demand. BJ Services last month reported a swing to an unexpected
fiscal first-quarter loss as revenue and margins declined.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com