Oil services company Halliburton refused to comment Friday on the potential acquisition of rival Baker Hughes, though Baker did confirm preliminary discussions.

"Halliburton does not comment on potential merger and acquisition plans," a spokesperson for the company said in a statement to UPI.

Zacks downgraded Baker Hughes stock after the company's third quarter earnings were viewed as underperforming.

Companies working in the exploration and production sector of the oil industry are struggling as oil prices continue to fall. Global prices have shed about 20 percent of their value and reached a point where most major oil companies are trimming their investment forecasts.

Baker, in a public statement Thursday, confirmed it was in preliminary talks with Halliburton regarding a possible merger.

"These discussions may or may not lead to any transaction," it said. "Baker Hughes does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required."

Baker (NYSE: BHI) and Halliburton (NYSE: HAL) are two of the largest companies of their kind. Halliburton has shown an ability to weather the oil price storm, saying in October its third quarter earnings rose 70 percent.

Shares of both companies were trading in positive territory before the opening bell Friday on Wall Street.