Halliburton Co, an oilfields services company, said that its board of directors has approved a plan for disposal of its remaining interest in KBR Inc.
Halliburton Co, an oilfields services company, said that its board of directors has approved a plan for disposal of its remaining interest in KBR Inc. through a split-off exchange offer to Halliburton's stockholders.
According to the terms proposed, the company would offer 135.627 million shares of KBR common stock to its stockholders in exchange for shares of Halliburton common stock at an exchange ratio to be determined by a specified formula. The company said that the distribution to its stockholders would be through a special pro rata dividend.
While the exchange offer and spin-off distribution is expected to be tax-free to Halliburton stockholders, it would be the final step in the separation of KBR from Halliburton, resulting in two independent companies.
For the recently concluded fourth quarter, KBR, a subsidiary of Halliburton providing engineering and construction services, reported a fall in profit on lower revenues, higher provision for income taxes and minority interest expenses. Income from continuing operations fell to $43 million or $0.28 per share from $48 million or $0.35 per share for the same quarter last year. Net income was $43 million or $0.28 per share compared to $56 million or $0.41 per share for the corresponding quarter prior year. On average, 5 analysts polled by First Call/Thomson Financial expected earnings of $0.19 per share for the fourth quarter.