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While the buyback may provide short-term benefits, Moser suggests that Baker Hughes could have better utilized the extra liquidity in the current depressed market conditions to focus on debt reduction or potential acquisitions, rather than stock repurchases. The consideration of "found money" due to the breakup fee offers a unique opportunity for the company to enhance shareholder value, despite current market hesitations.
Future of Mergers and Acquisitions in the Energy Sector
Given the complexity of the situation, the prospects for mergers and acquisitions in the energy sector remain uncertain. The Halliburton-Baker Hughes scenario, marked by scrutiny from regulatory bodies regarding industry consolidation, suggests that significant mergers may be less likely in the near future.