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Preview | Jan. 2-8

Corporate Scorecard: Add One, Subtract One

January 02, 2006|From Times Wire Services

CBS Corp. and the new Viacom Inc., which were created over the weekend when the old Viacom Inc. completed a plan to split itself into two companies, will begin trading Tuesday on the New York Stock Exchange.

Both companies will be in the Standard & Poor's 500 index.

Investors were given one CBS share and one new Viacom share for each two shares they owned of the old Viacom. Shares in CBS and the new Viacom have changed hands on a when-issued basis since Dec. 5. When-issued shares of the new Viacom were unchanged Friday at $40, down 6.7% since Dec. 5. CBS, which rose 50 cents to $25.50, is down 4.5% since it started trading.

Chairman Sumner Redstone engineered the breakup, announced in June, to separate faster-growing Viacom from CBS, which owns radio and television networks. Viacom owns MTV and Paramount Pictures.

When CBS joins the S&P 500 on Tuesday, credit card giant MBNA Corp. will leave it. Bank of America Corp. completed its acquisition of MBNA on Sunday in a deal worth $34.2 billion.

With MBNA in the fold, Bank of America, the nation's second-largest bank, has 40 million active credit card accounts.

Bank of America, based in Charlotte, N.C., plans to eliminate 6,000 jobs across both companies, with the goal of achieving overall cost savings of $850 million by 2007. Before the deal, the bank had 177,000 employees and MBNA had about 24,700.

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