GE to Acquire Lufkin Industries for $88.50/Share

GE (NYSE: GE) and Lufkin Industries Inc. (NASDAQ: LUFK) announced today
a joint agreement whereby GE will acquire Lufkin Industries Inc., a
leading provider of artificial lift technologies for the oil and gas
industry and a manufacturer of industrial gears, for approximately $3.3
billion. Lufkin shareholders will receive $88.50 per share in cash for
each of their Lufkin shares.

Artificial lift, used in 94 percent of the roughly 1 million
oil-producing wells around the world, helps lift hydrocarbons to the
surface in reservoirs with low pressure and improves the efficiency of
naturally flowing wells. Upon close, Lufkin will broaden GE Oil & Gas'
artificial lift capabilities beyond electric submersible pumps (ESPs) to
include rod lift, gas

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