USX directors approve split of Marathon Oil, United States Steel

July 31, 2001

USX Corp., Pittsburgh, said Tuesday that its directors have approved a reorganization that would split the company's steel business into a publicly traded company to be called United States Steel Corp. and the energy business into Marathon Oil Corp.

By the OGJ Online Staff

HOUSTON, July 31 -- USX Corp., Pittsburgh, said Tuesday that its directors have approved a reorganization that would split the company's steel business into a publicly traded company to be called United States Steel Corp. and the energy business into Marathon Oil Corp.

USX was created after entities with the same names were merged. The USX dissolution was announced earlier this year (OGJ Online, Apr. 24, 2001).

The current USX board will continue to oversee the affairs of the corporation until the reorganization is completed.

Thomas Usher, USX chairman and CEO, said the USX board has identified the directors for Marathon and United States Steel.

USX directors who will serve on the Marathon board are Usher (chairman), Clarence P. Cazalot Jr. (president and CEO), Shirley Ann Jackson, Charles R. Lee, Douglas C. Yearly, Seth E. Schofield, Charles A. Corry, and Neil A. Armstrong.

Joining the Marathon board will be David A. Daberko, chairman and chief executive officer of National City Corp., and Dennis H. Reilley, chairman, president and CEO of Praxair Inc.

Usher noted the reorganization is subject to approval of USX shareholders, receipt of a favorable tax ruling from the Internal Revenue Service on the tax-free nature of the transaction, completion of necessary financing arrangements, and receipt of necessary regulatory and third party consents. The transaction is expected to occur at yearend.