Kerr-McGee to Know Unit's Fate Soon

OKLAHOMA CITY (AP) _ Kerr-McGee Corp. expects to know the fate of its chemical division by the end of the year, the company's chief executive said Tuesday. <br/><br/>Luke R. Corbett, Kerr-McGee chairman

Tuesday, May 10th 2005, 1:15 pm

By: News On 6

OKLAHOMA CITY (AP) _ Kerr-McGee Corp. expects to know the fate of its chemical division by the end of the year, the company's chief executive said Tuesday.

Luke R. Corbett, Kerr-McGee chairman and CEO, said the decision on whether to sell the chemical division or offer it to the market through an initial public offering should be clear by the fourth quarter. Kerr-McGee plans to exit the chemical business and become a company strictly dedicated to oil and gas exploration and production, Corbett said.

``I hope to have clarity by year end,'' Corbett said. ``If it's a sale, we will probably know earlier in the fourth quarter.''

Since announcing plans to exit the chemical business, Kerr-McGee has pursued two tracks for determining the division's fate. Executives pitched the chemical unit to a number of potential buyers, said Thomas Adams, president of Kerr-McGee's chemical operation. Those who continue to show an interest in the unit will be coming for a more detailed look in the weeks ahead, Adams said.

Simultaneously, Kerr-McGee keeps moving closer to offering the chemical business to the public through stock. In a few weeks, the company planned to file a registration statement with the Securities and Exchange Commission that would start the process of offering the public shares in a standalone chemical business, Corbett said.

Pursuing both options means the company ``will be in a position to determine which will provide the greatest opportunity for shareholders,'' Adams said. ``The key thing from Kerr-McGee chemical is to add value to Kerr-McGee shareholders.''

Executive remarks came during and after Kerr-McGee's annual general meeting of shareholders. More than 300 people, mostly Kerr-McGee employees who walked over from the company's next door office tower, filled the Robert S. Kerr Auditorium in downtown Oklahoma City Tuesday morning.

The meeting carried only one sign of the proxy battle waged earlier this year by billionaire Carl Icahn over the future of the company. The meeting adjourned without the election of two board positions. As part of the settlement of competing lawsuits stemming from Icahn's attempt to take charge of the company's future, the meeting will reconvene on June 7 to complete the election, company spokeswoman Debbie Schramm said.