Halliburton Buying Dresser Industries in $7.7 Billion Stock Merger
Halliburton Co. and Dresser Industries Inc. announced a $7.7 billion merger Feb. 26, which they say will create an oilfield services and engineering and construction company with the broadest range of services to the petroleum industry worldwide. In an agreement approved by the boards of both firms, Dresser shareholders will receive one new share of Halliburton common stock for each Dresser common share. Based on Halliburton’s Feb. 25 closing price, the transaction is currently valued at $44 per Dresser share for a total of $7.7 billion. The transaction will be accounted for as a pooling of interests and is expected to be tax-free to Dresser’s shareholders. The companies’ 1997 combined revenues exceeded $16 billion and their combined market capitalization is over $19 billion. Dick Cheney, Halliburton’s chairman and ceo will be ceo of the combined company. William Bradford, Dresser’s chairman and ceo, will become chairman of Halliburton. The transaction is expected to be completed in the fall of 1998.