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Text size [+][-]  Friday March 12 2010GLOBAL EDITION

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16 Nov 2009 15:53

Shrinking gracefully

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Bristol-Myers Squibb will offer its 83% stake in publicly traded Mead Johnson Nutrition to its shareholders. Investors in the US drugs company can swap none, some or all of their stock for shares in the infant formula maker. For every $1 of Bristol share value tendered, they will receive $1.11 of Mead stock.

The ceiling on the exchange offer is 0.6027 shares of Mead common stock per share of Bristol common stock.

At least 144.5m shares of Mead stock must be distributed for the exchange to take place. Bristol owns 170m shares of Mead.

If all Mead shares are distributed at the ceiling of the exchange offer, 282m shares of Bristol would be tendered.

 

 


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The US drugs maker is offering its stockholders the chance to swap at a discount into shares of its publicly traded subsidiary Mead Johnson. That would improve Bristol’s earnings per share - which should come in handy with as much as 30% of its sales at risk as patents expire.

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