Kerr-McGee to Spin Off Chemical Business
Thursday, October 6th 2005, 10:16 am
By: News On 6
OKLAHOMA CITY (AP) _ Kerr-McGee Corp. said Thursday it will split off its chemical business through an initial public offering of its Class A common shares during the fourth quarter.
The energy and inorganic chemical company said it will continue to own Class B common shares of Tronox Inc., a maker of titanium dioxide pigment, following the IPO, which will be distributed to shareholders through a spinoff in 2006.
Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. Tronox holds a 13% global market share and has annual production capacity of 624,000 tonnes, the company said.
Kerr-McGee has aggressively changed its business portfolio after coming under pressure from shareholders led by billionaire financier Carl Icahn, who charged that the company wasn't properly managed.
Following the separation of its chemical business, Kerr-McGee will be a pure-play exploration and production concern.