DuPont’s board of directors approved the previously announcedinitial public offering (IPO) of Conoco common stock before the endof 1998. Following completion of the IPO, DuPont intends to offerits remaining Conoco shares to DuPont shareholders in exchange forDuPont shares in a tax-free split-off expected to be completedwithin 12 months.

This would result in DuPont’s completing its exit of the energybusiness within 12 months and permit the company, based on today’smarket values, to effectively acquire 10% to 20% of its currentlyoutstanding shares.

“In May we announced that DuPont would exit the energy businessso that DuPont and Conoco could better capitalize on marketopportunities to make both companies stronger,” said DuPont CEOCharles O. Holliday, Jr.

The announcement followed a record year for earnings and reserveadditions for Conoco, its parent, DuPont (see weekly NGI May 18,1998). However, analysts were not surprised by the move in fact,some wondered what took the company so long. “That’s somethingthey’ve [talked about] for a long time and they’re finally actingon that,” said Carol Freedenthal of Houston-based Jofree Corp. “Iguess they’ve just got better places they can put their money thanthe oil and gas business.”

Conoco, active in 40 countries, is a fully integrated energycompany involved in exploration, production, transportation,marketing, refining and power. The company ranks eighth in theworldwide production of petroleum liquids by all U.S.-basedcompanies, 11th the production of natural gas, and eighth inrefining throughputs.

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