BJ Services' Take-Under

Am I the only BJ Services (BJS) shareholder out there who thinks that this is a lousy deal? Is there any hope for a competing bid? BJ Services traded close to $40 back in 2006, and was as high as $33 last summer.

So we get .40 shares of Baker Hughes and $2.69 cash for a big total of $16.47. Wow, that's a big $0.63 premium over the previous close for BJS.

I know that the management of BJ Services has a reputation for being cheap, but that's not supposed to extend to when you sell your own company.

Comments

[skwestorange:]

No You're not the only one. But I suspect that the current glut in NG will effectively shut out any competing bids.

Sep 01 08:46 AM

[Eric Fox:]

The current glut in NG is because of all the shale wells that need fracing, which is what BJS does.

Sep 01 09:27 AM

[skwestorange:]

That is my point too. Since these frac wells are not profitable with gas prices below 6 or 7 dollars, demand for their services will be very muted for a long time. That is why I think competing bids are not in the cards.

Sep 01 09:44 AM

[clarkbaker:]

I'm VERY surprised... I think there must be some kind of payoff to management to get to these terms. Looks like the shareholders got a placeholder and the shaft. BHI however is a decent stock, but I rather would have all stock for BHI at this price. Cash isn't worth the paper its printed on lately.

Sep 01 12:53 PM