IN BRIEF : Stock Has Quantum Leap on News
Quantum Chemical Corp. announced today it was undertaking a $1.1-billion recapitalization plan that includes a one-time, $50 per-share dividend.
The announcement sent Quantum’s shares skyrocketing on Wall Street as investors scrambled to take advantage of the dividend to be paid Jan. 10. Quantum stock rose $17.12 1/2 a share to $105.62 1/2 in early New York Stock Exchange trading.
In a statement, Quantum said its board of directors had approved the recapitalization and dividend, as well as plans to sell the company’s oleochemicals business. Proceeds of the sale were to go toward the cost of the recapitalization.
Quantum Chairman John Hoyt Stookey said the recapitalization was “designed to unlock value for our shareholders” while allowing Quantum to continue a $1.3- billion capital expenditure plan.
Fred Siemer, a chemical industry analyst with Chemical Research, said, “the company has had a policy of trying to maximize shareholder value ever since Stookey took over,” and that today’s announcement was consistent with that policy.
