Varco Shareholder to Sell 3 Million Shares
Varco International in Orange announced Tuesday that one of its major shareholders was cutting its stake in the oil field service company from 21.7% to 10.2%, selling about 3 million shares of stock.
Baker Hughes in Houston, which acquired 6.3 million shares of Varco stock after selling some of its divisions to Varco, will sell 3 million of the Varco shares as part of a larger public offering Varco is planning.
“If Baker tried to sell that stock in the open market, it would drive the price down to nothing,” said Jeffrey Kilpatrick, president of Newport Securities in Costa Mesa.
Varco Controller and Treasurer Donald Stichler said Baker Houston sold its BJ Oil Tools in 1988 and TOTCO Instrumentation Division in 1990 and the stock was part of the sale agreement.
“Their intent has always been to sell” the shares, Stichler said. “They never wanted to be in the business of investing.” Varco’s stock was up 25 cents Tuesday on the New York Stock Exchange, closing at $10.13.
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