DuPont to Spin Off Conoco Inc. in Largest Initial Public Offering in History

Strategic Insights -

DuPont Co is set to spin off its oil subsidiary, Conoco Inc, marking one of the largest initial public offerings in history. The move is part of the company's "aggressive growth plan", which will see DuPont emphasize agricultural biotechnology and pharmaceutical products even more. Analysts estimate the initial share issue could bring in $US3 billion to $US5 billion, valuing Conoco at between $US15 billion and $US30 billion.

Key Takeaways:

  • DuPont plans to spin off Conoco Inc, its oil subsidiary, in a move that will mark one of the largest initial public offerings in history.
  • The company aims to generate $US3 billion to $US5 billion from the share issue, valuing Conoco at between $US15 billion and $US30 billion.
  • DuPont's aggressive growth plan will see the company focus even more on agricultural biotechnology and pharmaceutical products.
  • The company has recently made investments in the life sciences sector, including a $US1.7 billion stake in Pioneer Hi-Bred International Inc, the world's largest seed-corn company.
  • Monsanto Co has made a move to dominate agricultural biotech by agreeing to buy DeKalb Genetics Corp and Delta & Pine Land Co for $US4.3 billion, beating Novartis AG in a bidding war.
  • Speculation surrounds potential mergers or acquisitions between DuPont and Monsanto, but company officials have refused to comment on the matter.

Statistics:

  • Estimated revenue from Conoco's initial public offering: $US3 billion to $US5 billion
  • Valuation of Conoco: $US15 billion to $US30 billion
  • DuPont's investment in Pioneer Hi-Bred International Inc: $US1.7 billion
  • Monsanto's purchase of DeKalb Genetics Corp and Delta & Pine Land Co: $US4.3 billion
  • Date of Mitsubishi Chemical's purchase of Hoechst's agricultural business: 1996
  • Value of the 1996 Lucent Technologies Inc spin-off from AT&T Corp: $US3 billion

Sources:

  • Associated Press
  • Bloomberg News

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