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Non-Tech : Delphi Automotive Systems (DPH) -- Ignore unavailable to you. Want to Upgrade?

To: Greg from Edmonton who wrote (32)	5/26/1999 10:56:00 AM
From: violetta martinez	Read Replies (1) \| Respond to of 397

GM Sets Ratio For Delphi Spin-Off Wednesday, May 26, 06:51 am, EST Headlines DETROIT (Reuters) - General Motors Corp. took one of the final steps in spinning off its supplier unit Tuesday, announcing a $6.53 billion special stock dividend that grants GM shareholders 0.69893 shares of Delphi Automotive Systems Corp. for every GM share they hold. The spin-off ends the 90-year ownership affiliation of world's No. 1 automaker and its supply chain. GM hopes the split will help Delphi grow its business of supplying other customers, while helping GM become less vertically integrated. GM plans to distribute 452,565,000 shares of Delphi common stock -- or 80.1 percent of the company -- to GM shareholders May 28 in the form of a special dividend. Taking the distribution ratio set Tuesday, the dividend value to GM shareholders is $14.42 a share, or $6.53 billion. Once the spin-off is complete Friday, GM said it expected its stock price to fall to about the value of the remaining Delphi shares being spun off. Based on Delphi's closing price of $20.625, GM's stock would fall $14.42. GM closed at $84.625 Tuesday, up $1.50. With $28.5 billion in 1998 revenues, Delphi will be the 36th largest public company in the United States. Last week, Standard & Poor's said Delphi would become a member of its S&P 500 index. In February GM spun off 17.7 percent of Delphi in an initial public offering. GM will put the remaining 12.4 million shares of Delphi stock it holds, equal to 2.2 percent, in a Voluntary Employee Beneficiary Association trust previously set up by GM to fund benefits for retired hourly employees. GM said it has filed restated financial statements with the U.S. Securities and Exchange Commission to reflect the fact that Delphi, the world's largest auto parts supplier, is no longer a part of its business. Separately, Delphi Chief Financial Officer Alan Dawes told CNBC Tuesday he was comfortable with the First Call Corp. analysts' consensus earnings estimate of $1.85 a share for 1999. ''They look to be in the ballpark,'' said Dawes.