HUGHES TOOL DIRECTORS REJECT MERGER WITH BAKER
  The directors of Hughes Tool Co
  &lt;HT> said they would recommend to shareholders that they reject
  a merger with Baker International Corp &lt;BKO> today.
      Hughes vice-president Ike Kerridge said the recommendation
  would be put to shareholders at a meeting scheduled for 10 A.M.
  Local time (1600 GMT) to discuss the proposed merger.
      Kerridge said the board met yesterday to discuss the merger
  but decided against it.
      The Hughes board objected to a U.S. Department of Justice
  requirement that Baker sell off several specialised
  subsidiaries in businesses related to oil-drilling.
      The Hughes board last week indicated that it might cancel
  the merger because of the Department of Justice requirement.
      The board of directors of the California-based Baker had
  approved the merger. On February 17 Baker said it had signed an
  agreement to sell one of the subsidiaries.
      The companies had been given until April 22 to comply with
  the Justice Department requirement, Kerridge said.
  

