Royal Philips Elecronics’ 4Q results get boost from merger

U.K.–Royal Philips Electronics? fourth quarter (4Q) 2000 earnings will include one-time after tax gains of approximately EUR 2.2 billion (US$1.93 billion) in total. This results from the exchange of Philips? shares in Seagram to Vivendi Universal shares and from the merger of Philips? IT subsidiary Origin with Atos of France, which created Atos Origin.

Following the completion of the three-way merger between Vivendi, Seagram and Canal Plus, all of Philips? 47,831,952 shares in Seagram have been exchanged for 38,265,561 Vivendi Universal shares. This represents approximately 3.5% of Vivendi Universal?s outstanding common shares. As a result of the exchange, Philips will report an after-tax gain of approximately EUR 1.1 billion (US$ .96 billion).

Philips has agreed not to dispose of any Vivendi Universal shares for a period of 90 days after completion of the merger.

The merger between Philips? IT subsidiary Origin and Atos of France, which was recently completed, has resulted in a tax-free gain of approximately EUR 1.1 billion. Philips holds approximately 49% of the shares in the new company, Atos Origin.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.