Bristol-Myers Squibb Co. (BMY) said that it will split off its holdings in Mead Johnson Nutrition Co. (MJN). The company expects the split-off to be a tax-advantaged way to further deliver value to Bristol-Myers Squibb shareholders.
The split-off is expected to be net cash flow positive to the BioPharma business and accretive to earnings per share beginning in 2010.
The exchange offer is designed to permit Bristol-Myers Squibb shareholders to exchange shares of Bristol-Myers Squibb common stock for shares of Mead Johnson common stock at a discount.
The price of Mead Johnson common stock is to be established by a formula as described below, subject to an upper limit of 0.6027 shares of Mead Johnson common stock per share of Bristol-Myers Squibb common stock.
For each $1.00 of Bristol-Myers Squibb common stock accepted in the exchange offer, the tendering shareholder will receive about $1.11 of Mead Johnson common stock, subject to the upper limit on the exchange ratio.
The exchange offer will expire on December 14. Bristol-Myers Squibb owns 170 million shares of Mead Johnson class A and class B common stock, representing about 97.5% of the voting interest and 83.1% of the economic interest in Mead Johnson.
In connection with the exchange offer, Mead Johnson said it expects to incur costs incremental to its previous expectations for specified items in the fourth quarter of 2009 estimated in the range of $0.08 to $0.13 per share.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.