MDR Recovers After Falling On The Completion Of Spin-Off

Shares of McDermott International Inc (NYSE: MDR) have recovered after tumbling in early market trade. The shares fell sfter the company announced the completion of the spin-off of its power generation systems and government operations segments.The company has finished the spinoff through the distribution of the shares of The Babcock & Wilcox Company (NYSE: BWC) to the holders of MDR’s common stock. After this, MDR has become a leading, stand alone engineering, procurement, construction and installation (EPCI) company that is focused on the offshore upstream oil and gas market in the worldwide region.As per the spinoff, the stockholders of MDR will get 1 B&W common stock share for every 2 shares of MDR common stock held at the close of business on July 9, 2010. MDR stockholders will also get a cash payment in lieu of the fractional shares of B&W. From today, B&W will be a separate, publicly traded company that will trade on the New York Stock Exchange (NYSE) under the symbol “BWC.” However, McDermott will carry on with the same symbol “MDR” on the New York Stock Exchange (NYSE).Stephen M. Johnson, who became President and Chief Executive Officer of McDermott mentioned, “Today is a milestone in McDermott’s history, that we believe brings significant opportunity to accelerate growth based on our distinct corporate strategy, market prospects, free cash flow and customer relationships, allowing for enhanced management focus, more efficient allocation of capital, and greater operational and strategic flexibility.”MDR’s shares gained 5.69% to $12.82 at 1:44 pm.Read more from Benzinga's Company news.