Baker Hughes to buy back $1.5B in stock, $1B in debt as merger dies

• Baker Hughes (BHI) says it will use its $3.5B breakup fee due from Halliburton (HAL) following the collapse of their proposed merger to buy back $1.5B of stock and $1B of debt.
• BHI also outlines a series of moves to reduce costs and simplify its business, and expects the initial phase of cost reduction efforts to result in $500M of annualized savings by the end of 2016.
• The company also plans to refinance its $2.5B credit facility expiring in 2016.
• BHI -1.6% premarket.