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BAKER HUGHES AND SONAT ANNOUNCE THAT BAKER HUGHES HAS AGREED TO PURCHASE TELECO OILFIELD SERVICES FROM SONAT

 BAKER HUGHES AND SONAT ANNOUNCE THAT BAKER HUGHES
 HAS AGREED TO PURCHASE TELECO OILFIELD SERVICES FROM SONAT
 HOUSTON, Jan. 6 /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI; PSE) and Sonat Inc. (NYSE: SNT; PSE) announced today that Baker Hughes has agreed to purchase Teleco Oilfield Services Inc. from Sonat Inc. Teleco pioneered and continues to be a leading provider of both directional and formation evaluation measurement while drilling (MWD) services. The parties indicated the purchase price was comprised of $200 million in cash, 4 million shares of Convertible Preferred Stock and a 5 percent royalty payment for five years on certain technology revenues.
 J.D. Woods, chairman of Baker Hughes, stated: "This strategic acquisition will further enhance BHI's position in innovative drilling systems by completing our suite of industry leading drilling efficiency products and services. The addition of Teleco provides the final critical component of performance drilling."
 The Convertible Preferred Stock has a face amount of $200 million, a dividend rate of 6 percent per annum, and is convertible at $32.50 per share of Baker Hughes common stock subject to adjustment at closing. Baker Hughes believes that at the current share price for BHI common stock, the Convertible Preferred Stock would have an indicated market value of approximately $140-160 million. The royalty is payable on the revenues of the "triple combo" measurement while drilling system recently developed by Teleco.
 The acquisition is subject to various conditions to closing, including approval by the Baker Hughes Board of Directors and customary governmental approvals and consents.
 Baker Hughes is a leading provider of products and services for the oil, gas and process industries.
 Sonat, headquartered in Birmingham, Ala., is a worldwide energy company involved in natural gas transmission and marketing, oil and gas exploration and production, and oil services.
 -0- 1/6/92
 /CONTACT: Thomas W. Barker Jr., of Sonat, 205-325-3586, or Ronald G. Turner of Baker Hughes, 713-439-8666/
 (SNT BHI) CO: Sonat Inc.; Baker Hughes Incorporated; Teleco Oilfield Services
 Inc. ST: Alabama IN: OIL SU: TNM


BR -- AT001 -- 6765 01/06/92 09:09 EST
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Publication:PR Newswire
Date:Jan 6, 1992
Words:343
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