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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Greywolf who wrote (588)	5/25/1998 9:04:00 PM
From: Tommaso	Read Replies (3) \| Respond to of 2742

Well, I understood that, too. But the meaning of "spin-off" is that ownership of a company is transferred to stockholders of the previously owning company. That is, shares in the spun off company are distributed to shareholders of the owning company. It now appears that in the original news story "spin-off" was used incorrectly to refer to the sale of the rights to purchase 49.999 percent of Sodra. And it sounds as if Lundin Oil is simply retaining their 50.0001 percent ownership of Sondra. Here's the original wording from the news story: "Lundin, the Swedish energy group, intends to spin off Sodra Petroleum, which hopes to mirror the success of Desire, whose shares surged 138 per cent last week as investors speculated that it may strike some of the œ15 billion worth of oil thought to lie around the islands." Perhaps Tomas, to whom I addressed my original inquiry (as I remember) can confirm is this is the situation.