Abbott (NYSE:ABT) said its board of directors approved the spinout of its branded pharmaceuticals business as AbbVie Inc. in which Abbott’s shareholders will receive an AbbVie share for each ABT share they own.
The distribution is slated for Jan. 1, 2013, for shareholders of record as of Dec. 12, according to a press release.
"After the distribution, AbbVie will be an independent, publicly-traded company and Abbott will retain no ownership interest. AbbVie common stock is expected to begin trading on Jan. 2, 2013, on the New York Stock Exchange under the ticker symbol ABBV. Abbott will continue to trade on the NYSE under the ticker symbol ABT," according to the release.
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“Today’s announcement marks another important milestone toward the completion of our business separation,” chairman & CEO Miles White said in prepared remarks. “Abbott and AbbVie are well-positioned to begin 2013 as leaders in their respective markets.”
Last year Abbott announced its plan to spin out the pharma biz, saying it would keep the Abbott brand for its diversified medical businesses. White later told shareholders in a letter that the split “reflects long-term changes in the healthcare market that have led us over time to create distinctly different business models.” Over the summer, the company revealed the new executive roster for AbbVie.
In June, Abbott put together a $14.5 billion financing package to back the spinout. Morgan Stanley is putting up a $7.5 billion bridge loan, JP Morgan is putting up a $5 billion revolving credit line and Bank of America Merrill Lynch is leading a separate $2 billion revolver.
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