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HP out of Agilent in June
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April 7, 2000: 6:10 p.m. ET
Company ready to distribute its stake in test equipment outfit to shareholders
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NEW YORK (CNNfn) - Hewlett-Packard on Friday said that it would distribute all of its shares in Agilent Technologies to HP shareholders on June 2.
Hewlett-Packard (HWP: Research, Estimates), which spun off its test and measurement equipment unit to form Agilent (A: Research, Estimates) last November, currently holds 380 million shares, or roughly 84.1 percent, of Agilent's outstanding stock.
The Agilent shares will be distributed to HP shareholders in the amount of roughly 0.37 shares of Agilent for each HP share they own, the company said.
A final ratio will be based on the actual number of HP shares outstanding on May 2, 2000. On Jan. 31, 2000, the end of HP's first quarter of fiscal 2000, HP had 1.005 billion shares outstanding.
The distribution of shares of Agilent is part of a broader restructuring of HP.
In November, the Palo Alto, Calif.-based electronics giant realigned its business, creating two separate companies, one which includes its computing and imaging businesses, and the other, Agilent, which consists of its test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses. 
Agilent, which also is headquartered in Palo Alto, began operating independently on Nov. 1, and completed its initial public offering of approximately 15.9 percent of its common stock shortly thereafter. For the quarter ended Jan. 1, Agilent posted total sales of $2.25 billion. During the same period, HP reported revenue of $11.7 billion.
Agilent shares ended Friday's session up 18 at 123, a 17.1 percent gain on the day. At that level, Agilent shares stood 310 percent above their original offering price of 30 per share.
In February, Agilent reported its financial results for its first quarter as an independent company, besting Wall Street's forecasts amid stronger-than-expected demand for its products and services that address the communications market.
Executives also recently raised their revenue-growth forecast for fiscal 2000 to 20 percent from 13 percent.
Hewlett-Packard shares ended Friday's session up 5-7/8, or 4 percent, at 154. 
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