PITTSBURGH -- Allegheny Teledyne Inc., the world's No. 1 specialty-metals producer, said yesterday that it will change its name to Allegheny Technologies Inc. after spinning off its aerospace, electronics and Water Piks consumer units.
Allegheny Teledyne also said it plans a reverse stock split after the spinoffs, which may come by November.
The reverse split is subject to approval by shareholders of the Pittsburgh-based company. It would give them one share for every two shares owned. The company also cut its dividend by 38 percent.
The changes are part of an effort announced in January to shed aerospace and electronics businesses.
The company, formed in the 1996 merger of steelmaker Allegheny Ludlum Corp. and conglomerate Teledyne Inc., has been selling smaller Teledyne businesses while expanding its line of metals used in aircraft and other products. The company said it has gained $350 million in cash from the sales this year.
Under the spinoff plan, shareholders will get one share of common stock in the new aerospace and electronics company, to be called Teledyne Technologies Inc., for every seven shares of Allegheny Teledyne. They also will get one share in the new consumer company, to be called Water Pik Technologies, for every 20 shares of Allegheny Teledyne.
The company has applied for tickers for the companies it plans to spin off: TDY, for Teledyne Technologies, and PIK, for Water Pik Technologies. It will keep ALT as the ticker for the renamed Allegheny Technologies.
The company's board also cut the quarterly dividend to 10 cents a share, or 20 cents after the reverse split, from 16 cents.
Allegheny Teledyne shares fell 18.75 cents to $18.8125 yesterday.
Pub Date: 9/15/99