The big oil merger between Baker Hughes and Halliburton might not happen after all.
Late Friday, a report from Bloomberg, citing people familiar with the matter, said that merger talks between the two sides have stalled over concerns regarding price and the potential sale of assets.
Bloomberg said the two sides anticipate they would need to sell up to $US10 billion in assets for the deal to receieve regulatory approval.
News of the talks, first reported by The Wall Street Journal on Thursday afternoon, sent Baker Hughes shares sharply higher, and after trading near $US49 on Thursday afternoon, the stock closed Friday’s session at $US59.89.
In after hours trade on Friday, Baker Hughes shares were down about 2%. Halliburton shares, meanwhile, were down about 1%.
Bloomberg’s report said an alternative for Halliburton could be to make an unsolicited offer for Baker Hughes and nominate a slate of directors to its board.
This report comes after Baker Hughes on Friday morning confirmed the talks.