Baker Hughes to use breakup fee to repurchase stock and cut debt

Baker Hughes Inc. sought to reassure investors on Monday by announcing a $2.5bn plan to buy back stock and pay down debt, using the breakup fee it will receive following the collapse of its long-stalled takeover by oilfield services provider Halliburton Inc.

Baker Hughes stated that proceeds from a $3.5bn breakup fee from Halliburton would fund its $1.5bn share buyback and repayment of $1bn of debt.

Baker Hughes also stated its plans to refinance it’s $2.5bn credit facility maturing in September 2016.

Separately, the company also announced a further 2,000 job cuts as part of its attempts to cut costs by $500m this year.

Source: Reuters