General Electric Confirms Company Just Wants To Partner With Baker Hughes

Shares of Baker Hughes Incorporated (NYSE: 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 (NYSE: 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."