Baker Hughes-BJ Services deal underscores M&A revival

Baker Hughes Inc. (BHI), the world's third-largest oilfield services company, today agreed to snap up smaller rival BJ Services Co. (BJS) for $5.5 billion in cash and stock in an old-school merger. The deal seems to be so 2006 that it's practically quaint as the offer from Baker Hughes represents a 16.3 percent premium over the closing price of BJ Services stock on Friday, August 28, 2009.

The acquisition actually appears to be a decent deal for BJ Services holders, who saw their company report a third fiscal quarterly loss of $32.3 million, or 11 cents per share because of decreased demand for oil and natural gas. Shares of the Houston-based company fell more than 42 percent over the past year.