By the OGJ Online Staff
HOUSTON, Sept. 21 -- Conoco Inc. said Friday its shareholders have approved the combination of its class A and B common stock into a single class of new common on a one-for-one basis.
At a meeting Friday, shareholders also approved amendments and restatements of two of the company's incentive plans.
As a result of the combination, each outstanding share of class A and B common stock will be converted into one share of a new class of common stock. The combination is expected to be effective Oct. 8.
Archie Dunham, Conoco chairman and CEO, said, "Having a single publicly traded class of common stock will eliminate the confusion that resulted from having a dual-class structure, and will end trading disparities that existed between the class A and class B stock. We're gratified that many Wall Street analysts applaud the move to a simplified capital structure and cite the potential for improved liquidity and increased retail investor interest."
After the transaction is complete, shareholders will have the same economic ownership of Conoco stock they had prior to the merger. Each share of common stock will be entitled to one vote. Class B shareholders had five votes/share under the dual-class structure, which was established in connection with Conoco's 1998 initial public offering.
