Baker Puts Off Vote on Merger Until Feb. 25

Baker International Corp. will hold its annual shareholders meeting today, although the Orange-based oil services company has postponed a second special meeting to vote on the proposed merger between Baker and Houston-based Hughes Tool Co. The vote by Baker shareholders on the merger has been delayed until Feb. 25, pending negotiations which began last weekend between the two oil service companies and the U.S. Department of Justice. The department said Sunday that it will require Baker to sell its tricone drill bit and electrical submersible pump manufacturing operations as a condition of the merger. The two units represent $65 million in annual revenue for Baker, or about 5% of Baker’s $1.25 billion total annual revenue.

At its regular shareholders meeting, starting at 9 a.m. at the Doubletree Hotel in Orange, Baker will elect directors and handle other routine business. Also at issue will be two stockholder proposals calling for Baker to terminate all business in South Africa as a protest against the South African government’s practice of racial segregation.

Baker President Jim Woods said Tuesday that the management of Baker opposes the divestiture requests primarily because Baker’s mining equipment company realizes about $40 million in annual revenue from its South African operation.