Baxter to Split Into 2 Companies, BAX Stock Soars

The separation is expected to be completed by mid-2015

   

Baxter NYSE:BAXOn Thursday, Baxter International (BAX) announced plans to divide itself into two independent companies. The news sent BAX stock jumped about 11% in pre-market trading.

Baxter said the move will split its biopharmaceuticals business from its medical equipment unit. The medical equipment business generated revenue of about $9 billion last year, compared to about $6 billion for the biopharmaceutical unit. Baxter indicated that both of the new companies will be headquartered in Illinois, Reuters notes.

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Charges relating to the separation of the Baxter units are not expected to alter its previously-issued financial outlook for 2014.

The split will have to be cleared by regulators. If approval is given, Baxter expects to complete the separation by mid-2015.

BAX stock closed at $68.39 per share on Wednesday. Over the past 12 months, BAX stock has slipped about 2%.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/baxter-split-2-companies-bax-stock-soars/.

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