NEW YORK, Oct 21 (Reuters) - Ananym Capital would like

to see energy and technolgy company Baker Hughes ( BKR ) spin out its

oil field services and equipment business, arguing such a step

could help push up the stock price by at least 60%.

"That's our preferred path based on our analysis," Ananym

co-founder Charlie Penner said on Tuesday at the 13D Monitor

Active Passive-Investment Summit in New York. "But we also have

full confidence in Baker Hughes' ( BKR ) board and management to choose

the optimal path for shareholders."

The company, which now has a market value of $46 billion,

was created in 2017 through a merger of Baker Hughes ( BKR ) and GE Oil

and Gas and has two businesses.

At current market valuations, the whole company should be

trading at 13X 2026 estimated earnings before interest, taxes,

and amortization, Penner said, noting however that it is trading

only at 9X EBITDA.

The Industrial and Energy Technologies business makes

turbines, motors and compressors for LNG infrastructure and

low-carbon energy sources like electricity from renewables,

geothermal and hydrogen.

The oil field services and equipment business makes

equipment and provides services for oil and gas exploration and

the legacy Baker Hughes ( BKR ) business.

Baker Hughes' ( BKR ) stock price is up this year and has

outperformed rivals Halliburton ( HAL ) and Schlumberger, which

is now SLB. But the bulk of Baker Hughes' ( BKR ) earnings is

contributed by the technologies unit, and management and the

board recognize that investors have imposed a "sum of the parts

valuation discount," Penner said.

Baker Hughes ( BKR ) said it values the perspectives of all

shareholders, and that it "will continue to engage with Ananym

Capital to better understand their views and share ours." "We

remain focused on executing our strategy to drive growth and

deliver additional value to shareholders," a spokeswoman said.

Earlier this month, Baker Hughes ( BKR ) said it will conduct a

"comprehensive evaluation of capital allocation, business, cost

structure and operations to continue delivering shareholder

value."

Penner, who won a board victory at Exxon Mobil in 2021, and

partner Alex Silver founded Ananym last year and have held

constructive talks with Baker Hughes' ( BKR ) management.

By separating the oil field business, the technologies

segment could be properly valued, and each business could

optimize its capital allocation strategy, including more

investment and management focus for technologies.

The oil field business could be a "strong player" given its

earnings are more weighted to production revenue for existing

wells, instead of building new wells, and it has more

international exposure than Halliburton ( HAL ) and SLB, Penner said.

JPMorgan analysts have praised the company's actions, noting

in a note earlier in October that it has "been one of the

best-performing stocks in OFS (oil field services) by a wide

margin." Referring to the October 6 pledge to evaluate its

business, the JPM analysts wrote "Today's release suggests that

the company isn't planning to rest on its laurels. This has been

the company's DNA under CEO Lorenzo Simonelli."

Ananym had urged healthcare products distributor Henry

Schein to refresh its board, develop a CEO succession plan and

cut costs. CEO Stanley Bergman, who held the position 35 years,

is stepping down after Ananym threatened a board fight. It is

also suggesting that auto parts supplier LKQ sell its European

business.