Williams plots spinoff of communications unit

Journal Record, The (Oklahoma City), Nov 17, 2000

TULSA (JR) -- The Williams Cos. will pursue a tax-free spinoff of the company's communications business to shareholders.

Also Thursday, Williams announced its board of directors has approved a regular dividend of 15 cents per share on the company's common stock, payable Dec. 25 to holders of record Dec 8.

Assuming market conditions and other factors remain favorable, the board hopes to vote during the first part of next year to set a record date, the ratio of a share of Williams Communications Group stock that will be issued for each share of Williams Cos. stock and to direct the distribution of WCG shares.

"This important step continues a process that we believe remains in the best long-term interest of our shareholders," said Keith E. Bailey, chairman, president and chief executive officer of Williams. "Our energy and communications businesses have tremendous opportunities before them. Creating the most effective and efficient access to capital will help fuel that growth, and we believe that can best be achieved by creating two independent businesses."

Once the spinoff is completed, Williams Communications, now about 85 percent owned by Williams Cos., would become an independent, publicly traded company. Both are Tulsa-based firms.

Williams Communications stock surged 15 percent Tuesday on rumors of a potential buyout by SBC Communications of San Antonio, the parent of Southwestern Bell.

SBC already owns a stake in Williams Communications. It closed Thursday up 19 cents to $15.88.