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ASHLAND INC. UPDATES STATUS OF MAP TRANSACTION
09 February 2005 - Ashland Inc
| Ashland Inc. today provided further guidance on the status of a proposed transaction with Marathon Oil Corporation ('Marathon'). On March 19, 2004, Ashland announced the signing of an agreement under which it would transfer its 38-percent interest in Marathon Ashland Petroleum LLC ('MAP') and two wholly-owned businesses to Marathon in a transaction structured to be generally tax free and valued at approximately $3 billion. |
The two businesses are Ashland's maleic anhydride business and 61 Valvoline Instant Oil Change centers. The transaction is subject to several previously disclosed conditions, including approval by Ashland's shareholders, consent from Ashland's public debt holders and receipt of a favorable private letter ruling from the Internal Revenue Service ('IRS') with respect to the tax treatment of the transaction. On December 20, 2004, and January 25, 2005, Ashland provided updates on the status of the proposed transaction. The updates included information about the status of the requested tax rulings. Ashland and Marathon have continued their discussions with the IRS and are discussing with the IRS modifications of the proposed transaction that would allow a tax efficient transfer of Ashland's interest in MAP to Marathon. These modifications would require Ashland and Marathon to negotiate amendments to the Master Agreement executed by Ashland and Marathon on March 18, 2004. There can be no assurance that an agreement on a modified transaction will be reached. If an agreement is reached on a modified transaction, it is likely that the transaction would close in the second calendar quarter of 2005.
http://www.ashland.com
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