- The combination of General Electric's (GE +0.8%) oil and gas business with Baker Hughes (BHI +0.4%) has the potential to challenge Schlumberger (SLB +0.2%), but "it's a long-term game," Bernstein analysts say.
- Following yesterday’s investor meeting, the Bernstein boys say they are more convinced by the merger's long-term potential but remain cautious on delivery timing; while the long-term potential and revenue enhancement concepts dominated the meeting, the firm says little information was revealed on timing beyond the already published synergy estimates.
- Bernstein agrees conceptually with management that GE-BHI will challenge SLB for large-scale, integrated, at-risk projects and leadership of new commercial models in E&P, but expects implementation will prove more challenging than conveyed at the investor meeting.