General Electric Confirms Company Just Wants To Partner With Baker Hughes

Shares of Baker Hughes Incorporated BHI spiked higher by more than 8 percent early Friday after the Wall Street Journal reported that the company is either targeted for an acquisition or primed to secure a notable partnership.

Acquisition Talks

The Wall Street Journal, citing "people familiar with the matter," reported Thursday evening that General Electric Company GE is in talks to acquire Baker Hughes.

The publication stated that General Electric approached Baker Hughes and could value the oilfield services company at more than $20 billion. If an acquisition is successful, the industrial conglomerate could combine Baker Hughes with its other energy properties and spin them into a new publicly traded company.

General Electric Responds

The Wall Street Journal issued an update late Thursday evening after receiving a response from a General Electric spokesperson.

"We are in discussion with Baker Hughes on potential partnerships," a company spokeswoman told the Wall Street Journal after its initial report of a merger with Baker Hughes. "While nothing is concluded, none of these options include an outright purchase," she added. Baker Hughes declined to comment.

A similar response was also provided to Bloomberg. Regardless of any acquisition talks, Baker Hughes remains a top pick among some Wall Street analysts.

The Wall Street Journal also pointed out that Trian Fund Management, a notable activist investor that owns $2.5 billion worth of General Electric's stock has been pushing the company to buy back its own stock.

The fund's manager, Nelson Peltz, also said when he initially bought the multi-billion-dollar stake that the company needs to be "more disciplined" in its deal making, and the company's success in recent acquisitions as of late have been "mixed."