Applera Considers New Stock Structure
The tracking stock structure had tax and synergistic benefits for Applera. However, Celera is expected to become profitable this fiscal year and thus would be better served by listing on its own as a diagnostic company. The effect of such a change on Applied Biosystems should be minimal.
Norwalk, CT 8/8/07—Applera has retained Morgan Stanley to explore alternatives for its tracking-stock structure under which its Applied Biosystems and Celera businesses are separately listed on the New York Stock Exchange. Among the alternatives under consideration is the creation of two separate, publicly traded companies. A tracking stock does not represent a separate company, but rather a separate business and is designed to highlight the value of that particular business. Applied Biosystems and Celera began trading as tracking stocks of Applera in 1999 (see IBO 9/30/98). Applera also announced that it is doubling its current authorization to buy back Applied Biosystems stock to $1.2 billion, representing 20% of outstanding stock at current prices.
