DuPont is paying Merck $2.6 billion to buy out 50% stake in drug venture

Article Abstract:

Dupont Co. has announced that it will pay $2.6 billion for Merck & Co.Es portion of Dupont Merck Pharmaceutical Co. Kurt Landgraf, DupontEs executive vice president overseeing life sciences, stated that the pharmaceuticals unit would be a decisive factor in DupontEs life scienceEs rising about 35% of sales in 2002. Merck decided to divest itself of the unit, which made about $1.3 billion in sales in 1997, because Dupont wanted to build the business more quickly than did Merck. Mr. Landgraf stated that Dupont would take a one-time charge of about $1 billion because of the purchase.

Comment:

Dupont plans to pay $2.6 bil for Merck & Co.Es portion of Dupont Merck Pharmaceutical Co.

Pharmaceutical Preparation Manufacturing, Pharmaceutical Preparations, Parent-to-subsidiary activities, Subsidiary-to-parent activities, Drugs, DuPont Merck Pharmaceutical Co.

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DuPont sees a lower profit for 2nd period

Article Abstract:

The CEO of DuPont Co., Charles Holliday, announced that the company's 1998 second-quarter earnings will fall by up to 15% compared to the same period in 1997. Mr. Holliday called DuPont's performance "totally unacceptable." The earnings will be far less that what experts on Wall Street expected. DuPont attributed the poor earnings to several problems such as bad weather that led to low agricultural chemical sales.

Comment:

Company's 1998 second-quarter earnings will fall by up to 15% compared to the same period in 1997

Sales, profits & dividends

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BetzDearborn stock soars while shares of Hercules drop

Article Abstract:

Hercules Inc.'s deal to pay a premium of 100% to acquire BetzDearborn Inc. led to a rise in BetzDearborn shares. However, the deal led to a drop in Hercules' stock. Many saw Hercules' acquisition of BetzDearborn, a specialty-chemicals firm, as a major strategical victory. However, the purchase price of $72 per share, together with Hercules' assumption of $700 million in debt, hurt the company's share value.

Comment:

Hercules purchase of BetzDearborn increases BetzDearborn's share value but hurts Hercules' stock

Asset sales & divestitures, Acquisitions & mergers, Other Commercial and Service Industry Machinery Manufacturing, Water & Waste Treatment Equip, Hercules Inc., BetzDearborn Inc.

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