Less than two weeks after completing its spinoff of KBR Inc., Houston oil services giant Halliburton Co. is rumored to be in talks to buy crosstown rival Weatherford International Ltd. However, a Weatherford spokeswoman denied it Monday, April 16, and Halliburton wouldn't comment. Bond research firm Gimme Credit LLC wrote in a report Monday, April 16 that the speculation isn't so farfetched, as Halliburton is interested in expanding in the Eastern Hemisphere, where Weatherford has a strong presence.
Analyst Philip Adams thinks Weatherford could fetch $20 billion, a 17.6% premium to its market cap of $17 billion. But Houston research firm Pickering Energy Partners Inc. said the combination is unlikely, as Weatherford won't expand Halliburton's international presence and would dilute earnings. — Claire Poole
See report from Gimme Credit (subscription required)
See related story about KBR from TheDeal.com
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