DuPont is planning a stock split-off to establish Conoco as afully independent company. The split off would be achieved throughan exchange offer providing DuPont stockholders the opportunity toexchange, on a tax-free basis, shares of DuPont common stock forshares of Conoco Class B common stock currently held by DuPont. Theexchange offer is subject to approval by the SEC and acceptablemarket conditions. It is expected the exchange offer will becompleted in the third quarter.
In May 1998, DuPont said it planned to sell its stake in Conoco(see Daily GPI May 13, 1998). DuPontsaid it would offer up to 20% of wholly owned Conoco’s common stock tothe public in an initial public offering (IPO). The IPO, one of thelargest in history, was the first step in DuPont’s planned totaldivestiture of Conoco.
“Conoco has been a strong contributor to DuPont’s earnings andcash flow for nearly 17 years,” said DuPont CEO Charles O. HollidayJr. at the time. “However, we believe that value and growth can beenhanced for DuPont’s materials and life sciences businesses andfor Conoco by separating the two operations. We are building on our10-year strategic direction, and intensifying our focus on lifesciences, making it imperative that we rapidly accelerate ourinvestment to capture market opportunity and increase shareholdervalue.”
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