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What is New Baker Hughes worth?

The service industry’s favourite target has finally found a new home— and gets a new financial outlook to boot

After anti-trust regulators torpedoed Halliburton's $38bn Baker Hughes takeover, Baker Hughes's management vowed the company would forge ahead on its own. But as the clear laggard among the service industry's big three-led by Schlumberger and Halliburton-a step change was needed if Baker Hughes was to keep up. A tie-up with General Electric's oil and gas business might do the job. The new organisation-dubbed New Baker Hughes-will see the companies merge their operations and trade under the Baker Hughes handle. GE shareholders will hold a 62.5% stake, while Baker Hughes's will own the remainder and receive a one-off sweetener dividend of $17.50 a share. The companies' management were keen

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