HP's Agilent Names Price of IPO.

Hewlett Packard Co subsidiary, Agilent Technologies Inc, said late on Friday that it plans to sell 57 million shares at a projected price range of $19 to $22 each in its long-awaited initial public offering. The IPO underwriters, which include Morgan Stanley Dean Witter, Goldman Sachs, Credit Suisse First Boston and Merrill Lynch, have an option to float an additional 8.55 million shares if the offering is over-subscribed, according to a Securities and Exchanges Commission filing.

Palo Alto, California-based Agilent makes electronic test and measurement instruments for telecommunications carriers and hardware providers, as well as semiconductors, fiber-optic devices and healthcare and chemical analysis technology products. The firm said it plans to use the estimated $1.108bn proceeds, including exercise of the US underwriters' over-allotment option, to pay H-P as a dividend. Meantime HP will pay about $983m in cash to Agilent under the terms of the separation deal.

The offering, the timing of which will be determined by HP, will leave the computer products giant with an 87% stake in Agilent, which it will dispose of by mid-2000 through distributing Agilent shares to its own shareholders.

Agilent executives said in the filing that the firm's separate flotation on the New York Stock Exchange would improve its fund- raising capabilities by allowing its to make debt or equity securities issues. It will also improve the firm's bargaining power to make acquisitions and, internally, improve product focus, market responsiveness and employee accountability, the filing said.