Halliburton, KBR exchange offer oversubscribed

By Lisa Kerner

Charlotte, N.C., April 3 - Preliminary results show that in the Halliburton Co. exchange offer for shares of KBR, Inc., a total of 210,740,976 shares of Halliburton common stock were tendered.

Under the offer, Halliburton said it would exchange up to 85,273,184 of its shares for KBR shares. Because the offer is oversubscribed, Halliburton will only accept approximately 40% of the Halliburton shares tendered, according to a company news release.

Shares of Halliburton common stock tendered but not accepted for exchange will be credited to the tendering holder's account in book-entry form after the final proration factor is announced, the company said.

Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. were the dealer managers for the exchange offer.

The final exchange rate, as of March 29, is 1.5905.

Under the original exchange offer, announced on March 2, tendering stockholders would have received about $1.08 of KBR common stock for each $1.00 of Halliburton common stock.

The exchange offer is the final step in the separation of the engineering construction and services company from Halliburton, the company said.

Halliburton, based in Houston, provides products and services to the petroleum and energy industries.

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