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USX to spin off units
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April 24, 2001: 10:02 a.m. ET
Board approves plan to return energy, steel units to independent businesses
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NEW YORK (CNNfn) - USX Corp. said Tuesday its board had agreed to divide its two units, USX-Steel and USX-Marathon Group, into separate energy and steel businesses in a reorganization of the corporation's much criticized tracking-stock structure.
The plan, which comes after the company hired financial and legal advisers late last year, calls for a tax-free spinoff of the steel and steel-related businesses of USX -- formerly called U.S. Steel before the company changed its name in 1986 -- into United States Steel Corp, an independent, publicly traded company.
 Current USX-Steel (X: up $1.01 to $16.90, Research, Estimates) common stock would become holders of U.S. Steel common stock, the company said. Shareholders of USX-Marathon Group (MRO: up $0.60 to $31.97, Research, Estimates) would become common stock holders of Marathon Oil Co. -- the name of the oil company acquired by the then U.S. Steel in 1982. The plan does not include a cash distribution to shareholders.
Chairman and Chief Executive Thomas Usher, who will become chairman and chief executive of U. S. Steel, said the plan would allow each company to build its business through stock-based acquisitions. Usher said the new structure would be highly beneficial given the consolidation taking place in both energy and steel.
Clarence Cazalot Jr., currently president of the Marathon Oil Group, will become president and chief executive of Marathon Oil Co. 
--from staff and wire reports
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