Halliburton to spin-off minority stake in KBR

| 1/31/2006

Halliburton Co. plans to spin off a minority stake in its engineering and construction unit Kellogg Brown & Root, which is responsible for a significant portion of the trucking support operations for troops Iraq.

The KBR unit posted $3 billion in overall revenue in the fourth quarter.

According to The Association Press, Halliburton President and CEO Dave Lesar told analysts the company will file for an initial public offering of shares in KBR with the Securities Exchange Commission.

The AP reported that Halliburton officials only plan to sell off the minority stake in the company, with the parent company hanging on to the remaining stock.

“Our plan, at this point, is a 20 percent (initial public offering) of KBR; however, in response to interest we have received, we may consider selling some pieces of KBR, but we would not expect such sales to change our IPO plans,” Halliburton Chief Financial Officer Cris Gaut told The AP.