General Electric Company (NYSE:GE) and Baker Hughes Incorporated (NYSE:BHI) are trending after the Wall Street Journal reported that Baker Hughes’ CEO, Martin Craighead, has confirmed that his company is in talks with GE.
“I want to clarify that while we have been in discussions with GE, nothing is concluded and there is no guarantee anything will be concluded,” Craighead said in an email.
Although a GE spokesperson said on Thursday that the conglomerate isn’t considering an outright purchase, the company is interested in forming a potential partnership. Because neither GE nor Baker Hughes elaborated on what ‘partnership’ meant, investors are uncertain as to what the two companies are striving for. Some Wall Street analysts speculate that a partnership means that GE could give itself an option to purchase Baker Hughes down the road. Other analysts speculate that the term means GE could merge its oil and gas segment with Baker Hughes to unlock synergies, and then spin the combined company into a stand-alone company in a tax-advantageous way.
Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 44 were long Baker Hughes Incorporated (NYSE:BHI) at the end of June, while 57 owned shares of General Electric Company (NYSE:GE).
Amazon.com, Inc. (NASDAQ:AMZN) is in the spotlight after the e-commerce giant began offering its Prime service in China for the first time on Friday. For its customers in China, Amazon’s Prime free-shipping service costs 388 yuan annually, or over $40 less than the current U.S. cost of $99 per year. Although it won’t include any free digital content, Prime’s Chinese service does include free shipping on purchases of over 200 yuan ($29.50) on millions of participating overseas products. Given the size of the e-commerce market in China, Amazon bulls hope the company’s new Prime service will help it rapidly gain marketshare from the current 800-pound-gorilla in the space, Alibaba Group Holding Ltd (NYSE:BABA). Ken Fisher’s Fisher Asset Management owned 1.98 million shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of September, which accounted for 2.93% of the value of the fund’s public equity portfolio at the time.