Houston, Texas-based engineering and construction company McDermott International Inc. (MDR)Friday said its Board of Directors approved the spin-off of its power generation systems and government operations segments through the distribution of shares of The Babcock & Wilcox Company, to holders of McDermott common stock. The distribution of B&W common stock is expected to occur on July 30, 2010, with McDermott stockholders receiving one share of B&W common stock for every two shares of McDermott common stock held at the close of business on July 9, 2010.
Following the distribution of the B&W common stock in the spin-off, B&W would be a separate, publicly traded company, and McDermott would not retain any ownership interest in B&W. McDermott expects that a "when-issued" public market for B&W common stock would commence shortly after the July 9, 2010 record date and would continue through the distribution date. McDermott also anticipates that "regular-way" trading of B&W's common stock would begin on August 2, 2010.
MDR is currently trading at $21.28, up $0.16 or 0.76%, on a volume of 788 thouand shares on the NYSE.
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