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 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.