Kerr-McGee Corp.’s board of directors
has authorized management to proceed
with its plan to separate its chemical
business including the spinoff or
sale of the unit, which includes its titanium
dioxide operation. In addition,
the board has authorized the company
to proceed with a share repurchase
program initially set at $1 billion. The
board expects to expand the share
repurchase program as the chemical
business separation proceeds.
“We do not believe that the value of
our chemical business is adequately
reflected in our market valuation,”
said Luke R. Corbett, Kerr-McGee
chairman and chief executive officer.
Kerr-McGee’s chemical unit has gross
production capacity of 624,000 tons per
year of titanium dioxide. Approximately
83% of this capacity utilizes the company’s
proprietary chloride-process technology
for producing titanium dioxide
pigment. Kerr McGee’s pigment is marketed
around the world under the
Tronox brand name.