Halliburton Plans for Kellogg Partial IPO
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Halliburton Co. is planning to sell just under 20% of subsidiary Kellogg Brown & Root in an initial public offering later this year, chief executive David Lesar said Monday.
The remaining 80% will be spun off to Halliburton shareholders by April. The IPO is contingent on the Securities and Exchange Commission completing a review of the offering by the end of the year.
“If we are unable to proceed with the IPO by the end of the year, we will spin off 100% of KBR to Halliburton shareholders by early 2007,” Mr. Lesar said.
Halliburton is conducting the spinoff due to recent operating difficulties and weaker earnings for its construction and government contracting division. KBR’s third-quarter revenue reached $2.4 billion, about 40% of Halliburton’s total revenue.
Earlier in the year, Mr. Lesar had said the IPO was contingent on the general market for new public offerings.
On Monday, he said the IPO market had improved.
