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Bristol-Myers Squibb to split off Mead Johnson via exchange offer
By Lisa Kerner
Charlotte, N.C., Nov. 16 - Bristol-Myers Squibb Co. announced plans to split off its holdings in Mead Johnson Nutrition Co. in a tax-free exchange.
Shareholders can exchange all, some or none of their Bristol-Myers shares of common stock for shares of Mead Johnson common stock, according to a Bristol-Myers news release.
Tendering shareholders will receive approximately $1.11 of Mead Johnson common stock for each $1.00 of Bristol-Myers common stock accepted subject to an upper limit of 0.6027 shares of Mead Johnson per Bristol-Myers share.
The largest possible number of shares of Bristol-Myers common stock that will be accepted will be equal to 170 million divided by the final exchange ratio, which will be announced on or before Dec. 11, Bristol-Myers said.
The exchange offer expires at midnight ET on Dec. 14.
Bristol-Myers said it will convert all of its Mead Johnson class B common stock into Mead Johnson class A common stock. Only Mead Johnson class A common stock will remain outstanding once the exchange offer is completed.
According to Bristol-Myers, it owns 170 million shares of Mead Johnson class A and class B common stock, representing approximately 97.5% of the voting interest and 83.1% of the economic interest in Mead Johnson.
"Now is the right time to move forward with a split-off given the excellent performance of Mead Johnson since the IPO earlier this year and our confidence in the current and future performance of our biopharmaceuticals business," James M. Cornelius, Bristol-Myers' chairman and chief executive officer, said in the release.
Citigroup Global Markets Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. are the dealer managers for the exchange offer.
Bristol-Myers is a New York biopharmaceutical company.
Mead Johnson, based in Evansville, Ind., makes nutritional products for infants and children.
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