KENILWORTH, N.J., Sept. 13 /PRNewswire-FirstCall/ -- Schering-Plough Corporation (NYSE:SGP) today announced that all of its outstanding 6% mandatory convertible preferred stock issued in 2004 will automatically convert into shares of its common stock on Sept. 14, 2007.
Each outstanding share of the preferred stock will automatically convert into 2.2466 shares of common stock. The conversion ratio of 2.2466 was determined by adjusting the minimum conversion rate of 2.2451 in accordance with antidilution adjustments for the payment of dividends on the Corporation's common shares in excess of $0.055 for the second and third quarters of 2007. This reflects the increase in the quarterly dividend from $0.055 to $0.065 per share on the Corporation's common stock as announced on Feb. 27, 2007.
No fractional shares of the Corporation's common stock will be issued as a result of the mandatory conversion. In lieu of issuing any fractional shares, the Corporation will pay an amount, in cash, to the holder of fractional shares equal to the same fraction of the current market price of a share of common stock, with current market price calculated as the average of the daily closing prices for the five consecutive trading days prior to Sept. 13, 2007.
Schering-Plough is a global science-based health care company with leading prescription, consumer and animal health products. Through internal research and collaborations with partners, Schering-Plough discovers, develops, manufactures and markets advanced drug therapies to meet important medical needs. Schering-Plough's vision is to earn the trust of the physicians, patients and customers served by its approximately 33,500 people around the world. The company is based in Kenilworth, N.J., and its Web site is http://www.schering-plough.com/.
DATASOURCE: Schering-Plough Corporation
CONTACT: Media: Steve Galpin, Jr., +1-908-298-7415; or Investor: Alex
Kelly, or Robyn Brown +1-908-298-7436 ,all of Schering-Plough Corporation
Web site: http://www.schering-plough.com/
Company News On-Call: http://www.prnewswire.com/comp/777050.html
Schering Plough (NYSE:SGP)
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