Kerr-McGee announces stock buyback plan

OKLAHOMA CITY (AP) _ Kerr-McGee says it will pay $4-billion to buy back 29 percent of its outstanding stock in the deal that ended a battle with corporate raider Carl Icahn. <br/><br/>The Oklahoma City-based

Thursday, May 19th 2005, 11:04 am

By: News On 6

OKLAHOMA CITY (AP) _ Kerr-McGee says it will pay $4-billion to buy back 29 percent of its outstanding stock in the deal that ended a battle with corporate raider Carl Icahn.

The Oklahoma City-based energy company expects to pay $85 per share _ 14 percent higher than Thursday's closing price of $70.25 per share. Kerr-McGee stock was up 39 cents per share Friday morning to $70.64 per share.

To pay for the buyback Kerr-McGee is taking out $4.25-billion in loans and $1.25-billion in a revolving credit line. The company plans to repay the debt by selling its chemical division and some of its exploration and production assets.