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Halliburton taps BofA, Deutsche Bank for asset sales: sources
April 16, 2015 / 8:30 PM / 2 years ago

Halliburton taps BofA, Deutsche Bank for asset sales: sources

(Reuters) - Halliburton Co has hired Bank of America Corp and Deutsche Bank AG to assist in the sale of two businesses that could be valued at as much as $5 billion collectively, according to people familiar with the matter.

Following its $35 billion merger agreement with Baker Hughes Inc in November, Halliburton earlier this month outlined some of the oilfield services assets it will seek to divest to alleviate regulators' antitrust concerns.

Bank of America has been mandated to sell parts of Halliburton's Sperry Drilling business, which provides offshore and onshore drilling and petrophysical engineering services globally, the people said this week. These assets include directional drilling, logging-while-drilling, and measuring-while-drilling, the people added.

The Sperry units for sale generate about $3 billion of revenue annually, and could fetch about that amount in a sale, the people said.

Separately, Deutsche Bank is working to sell Halliburton's drill bits business, including the roller cone bits and fixed cutter bits, the people said. These assets could be sold for between $1.5 billion and $2 billion, the people added.

Many of Halliburton's clients have halted or postponed drilling projects in the last few months in the wake of low oil prices, a downturn that could weigh on the value of the assets for sale, the people cautioned.

Credit Suisse Group AG, which advised Halliburton on its deal with Baker Hughes in November, is the global coordinator for all of the divestitures and will be involved in each auction, the people said.

Halliburton remains in discussions with federal antitrust regulators regarding other possible divestitures, the people said. Investment banking mandates for Halliburton's cementing and well-completion businesses are expected to be awarded in the next two months once discussions with regulators have determined which assets should be divested, one of the people said.

The sources required anonymity because the deliberations are confidential. Halliburton, Credit Suisse, Bank of America and Deutsche Bank declined to comment.

The merger between Halliburton and Baker Hughes will create an oilfield service behemoth to take on market leader Schlumberger NV, as customers sharply curtail spending in a crude oil downturn.

The deal is expected to close late in the second half of 2015, subject to regulatory approval.

Reporting by Greg Roumeliotis and Mike Stone in New York; Editing by Christian Plumb

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