Halliburton offer for KBR oversubscribed |
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Tue, 03 Apr 2007 17:31
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HOUSTON (AP) - Halliburton Co. said Tuesday it will only accept about 40 percent of the Halliburton shares tendered under an offer to exchange one of its shares for 1.59 shares of KBR Inc. stock.That offer, which was heavily oversubscribed by its Monday expiration, resulted in the tendering of 210.7 million Halliburton shares -- more than the 85.3 million Halliburton offered to accept. In response, the oil field services company said it will only accept some of the tendered shares on a prorated basis, in proportion to the number of shares tendered. The company expects that it eventually will accept about 40 percent of tendered shares. Presumably, if an investor tendered 1,000 shares, about 400 would be accepted.The swap is part of Halliburton's plan to spin off its stake in the engineering and construction services company. KBR had its initial public offering in November, although Halliburton retained an 80 percent interest in the company.Credit Suisse Securities LLC and Goldman Sachs & Co. served as the dealer managers for the exchange offer.Shares of Halliburton rose 3 cents to $32.39 on the New York Stock Exchange; shares of KBR gained 11 cents to $28.80, also on the Big Board.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Halliburton board OKs KBR plan 