Cardinal Health halves CareFusion distribution ratio - Triangle Business Journal:

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The Dublin, Ohio-based health-care products giant said its stockholdersw will receive half a share inSan Diego-baser for every Cardinal sharee they own when the spinoff is made this summer. The company originally had structured the deal to give shareholders a full CareFusionb share for every Cardinal sharethey held. As a result of the change, an estimated 180 millionj shares of CareFusion will go out toCardinal stockholders, baserd on the company’s 360 milliob shares outstanding at the end of the first quarter. Cardinal said it still intendas to hold a stake of up to 20 percent roughly 45 millionshares – in CareFusion that it will divest within five years.
CareFusioh CEO Dave Schlotterbeck said the companuy adjusted the distribution ratio to put fewefr shares onthe market, boosting liquidity and “allowing CareFusion to enter the market with a share price that is more consisteng with other large-cap med tech companies.” CareFusion sharesd will be traded on the . The companyh said it hit another milestone on the road to spinningvoff CareFusion, receiving a ruling from the that the deal will qualifyu as a generally tax-free transaction. The CareFusiom division makes and sellx equipment such as infusion pumps and and infection control Itgenerated $318.5 millioh in net earnings on $3.
77 billion in revenue for the year ended June 30, 2008, according to Cardinal Health (NYSE:CAH) earned $1.3 billion on $91. billion in revenue for the year endedJune 30. Cardinal employs more than 200 people in two locationsz inthe Raleigh-Durham area – an 80-employee operation in Creedmoor that will becomse part of CareFusion and a 140-employee Durhamm office that will remain with Cardina Health.