Baker Hughes Surges as GE Says It's Keeping Stake Through Pact

(Bloomberg) -- Baker Hughes has cleared one obstacle on its recovery path.

General Electric Co. told investors Wednesday it has no plans to alter its majority ownership stake in the world’s third-biggest oilfield services and equipment provider prior to the end of their two-year lockup period in 2019.

The announcement by Jamie Miller, chief financial officer at the Boston industrial conglomerate at a Barclays conference, helped put to rest months of speculation by analysts and investors that Baker Hughes could see much of GE’s 62.5 percent stake in the company sold off early. GE would have needed certain approvals from Baker Hughes to alter their agreements.

Baker Hughes, which merged with the oil and gas unit of GE in July last year, rose the most in more than three months on the GE announcement.

To contact the reporter on this story: David Wethe in Houston at dwethe@bloomberg.net.

To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net, Carlos Caminada, Joe Carroll

©2018 Bloomberg L.P.