Altria (MO) just released the spin information we have been waiting for.
PHILIP MORRIS INTERNATIONAL SPIN-OFF EFFECTIVE MARCH 28, 2008
* Identifies new Board of Directors post-spin for both Altria and PMI
* Sets spin-off share distribution ratio of one-for-one
* Announces dividend policies, initial dividend rates and share repurchase programs
— Altria dividend policy anticipates payout ratio of 75% post-spin
— Altria initial post-spin annualized dividend rate of $1.16 per common share
— Altria post-spin share repurchase program of $7.5 billion over 2 years
— PMI dividend policy anticipates payout ratio of 65% post-spin
— PMI initial post-spin annualized dividend rate of $1.84 per common share
— PMI post-spin share repurchase program of $13.0 billion over 2 years
* To commence tender offer shortly for all outstanding Altria notes
* Forecasts 2008 earnings per share growth rates
— Altria 2008 full-year diluted earnings per share from continuing operations projected to grow approximately 9% to 11% from a 2007 adjusted base of $1.50, excluding PMI, which will be accounted for as a discontinued operation for the full-year 2008
— PMI 2008 full-year diluted earnings per share from continuing operations projected to grow approximately 12% to 14% at current exchange rates, from a 2007 pro-forma adjusted base of $2.78
Disclosure (“none” means no position): Long MO
