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Interestingly, Halliburton's stock has risen by approximately 2-3% despite the annulment, leading investors to ponder the complexities behind this decision. Taylor Muckerman highlights that Baker Hughes' declining stock could stem from its failure to secure the premium that Halliburton was initially willing to pay.
Baker Hughes plans to allocate a significant portion of its breakup funds—around $1.5 billion—to stock buybacks, which represents over 7% of its outstanding shares. A portion of the remaining funds will go towards debt repayment, demonstrating a cautious approach towards capital allocation. However, the absence of any immediate growth announcements in a recovering energy market has left investors skeptical about the company's future prospects.