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FORM 3 OMB APPROVAL
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION OMB Number: 3235-0104
WASHINGTON, D.C. 20549 Expires: September 30, 1998
Estimated average burden
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES hours per response . . . 0.5
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting 2. Date of Event Re- 4. Issuer Name and Ticker or Trading Symbol
Person* quiring Statement
(Month/Day/Year) WESTERN ATLAS INC. (NYSE: WAI)
BAKER HUGHES INCORPORATED 5/10/98
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(Last) (First) (Middle) 3. IRS or Social 5. Relationship of Reporting 6. If Amendment, Date of
Security Persons to Issuer Original
Number of (Check all applicable) (Month/Day/Year)
3900 ESSEX LANE Reporting Person
SUITE 1200 (Voluntary) [ ] Director [ ] 10% Owner
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(Street) [ ] Officer [X] Other 7. Individual or
(give (specify Joint/Group
title below) below) Filing (Check
Houston Texas 77027 Applicable Line)
May be deemed to be a 10%
owner under Section 13(d) [X] Form filed by One
of the Securities Exchange Reporting Person
Act of 1934, as amended
[ ] Form filed by More
than One Reporting
Person
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(City) (State) (Zip) TABLE I -- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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1. Title of Security 2. Amount of Securities 3. Ownership 4. Nature of Indirect
(Instr. 4) Beneficially Owned Form: Direct Beneficial Ownership
(Instr. 4) (D) or Indirect (Instr. 5)
(I) (Instr. 5)
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None
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
* If the form is filed by more than one reporting person, see Instruction 5(b)(v). SEC 1473 (7-96)
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FORM 3 (CONTINUED) TABLE II -- DERIVATIVE SECURITIES BENEFICIALLY OWNED
(E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
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1. Title of Derivative Security 2. Date 3. Title and Amount of 4. Conver- 5. Owner- 6. Nature of Indirect
(Instr. 4) Exercisable and Securities Underlying sion or ship Beneficial Ownership
Expiration Date Derivative Security Exercise Form of (Instr. 5)
(Month/Day/ (Instr. 4) Price of Deriv-
Year) Deri- ative
vative Security:
Security Direct
------------------------------------------------- (D) or
Date Expira- Amount or Indirect (I)
Exercis- tion Title Number (Instr. 5)
able Date of Shares
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Option to purchase shares of
common stock, par value $1.00
per share ("Common Stock"), of
Western Atlas Inc. ("Western
Atlas")* * * Common Stock 10,905,763 $98.70* D n/a
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Explanation of Responses:
* Beneficial ownership of 10,905,763 shares of Common Stock (subject to BAKER HUGHES INCORPORATED
adjustment as set forth in the Stock Option Agreement (as defined below))
is being reported hereunder solely as a result of the Stock Option Agreement By:
dated as of May 10, 1998 (the "Stock Option Agreement") between Western Atlas
and Baker Hughes Incorporated ("Baker Hughes"). The option granted by the
Stock Option Agreement is exercisable by Baker Hughes only upon the occurrence
of certain events as set forth therein, none of which have occurred as of the
date hereof. The exercise price of the option pursuant to the Stock Option
Agreement is the lesser of (i) $98.70 per share and (ii) a price based on /s/ Lawrence O'Donnell, III 5/20/98
the closing price of Baker Hughes common stock on the New York Stock ------------------------------- ----------
Exchange, Inc. The option expires upon the occurrence of certain events set **Signature of Reporting Person Date
forth in the Stock Option Agreement. For purposes of Section 16 of the
Securities Exchange Act of 1934, as amended, Baker Hughes expressly disclaims Lawrence O'Donnell, III
beneficial ownership with respect to shares of Common Stock that may be Vice President and General Counsel
purchased by Baker Hughes pursuant to the terms of the Stock Option Agreement.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note. File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this Page 2
form are not required to respond unless the form displays a currently valid OMB number. SEC 1473 (7/96)
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