Will Halliburton Buy Baker Hughes?

Is a big merger brewing in the oil services field?

Citing people familiar with the deal, the Wall Street Journal reports that Halliburton (HAL) is in talks to buy Baker Hughes (BHI). The talks are reportedly moving quickly and the two could soon reach an agreement.

What about a price? The newspaper couldn't get a number, but argues that any deal would have to bring a premium to Baker Hughes's $21.6 billion market capitalization.

Investors seem to approve. Baker Hughes surged 15.2% to close at $58.75 shortly before today's closing bell, while Halliburton jumped just over 1% to end at $53.79.

If it happens, Halliburton buying Baker Hughes would be one of the biggest acquisitions for the industry in recent memory.  It comes at a time when companies related to the oil industry – from major producers to offshore drillers — have been battered by slipping crude oil prices.

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Crude oil for December delivery fell below $75 a barrel today for the first time in more than three years, and dragged energy stocks along for the ride.

Services companies provide equipment and services to exploration and production companies so they can find and extract oil and natural gas. The months-long slide in crude prices has pressure the whole industry.

Earlier this week, analysts at Credit Suisse reduced earnings estimates for Halliburton, Baker Hughes, Schlumberger (SLB) and Weatherford International (WFT).