8-KOther EventsExhibits & Filings

SLB LIMITED/NV 8-K Report, Corporate Update (Jan 19, 2006)

Filed January 19, 2006For Securities:SLB

Summary

Schlumberger Limited (SLB) announced a significant corporate action on January 19, 2006, involving a two-for-one stock split of its common stock. This action aims to increase the accessibility of its shares by reducing the per-share price, potentially attracting a broader investor base. The split is set to take effect for stockholders of record as of March 1, 2006, with new shares distributed on April 7, 2006. In conjunction with the stock split, the company's Board of Directors also declared an increased quarterly dividend. On a pre-split basis, the dividend will be 25 cents per share, payable on April 7, 2006, to shareholders of record on March 1, 2006. Importantly, this increased dividend rate will only apply to shares outstanding prior to the stock split, effectively meaning a 12.5 cent per share dividend on a post-split basis. This move signals confidence from management and aims to reward shareholders.

Key Highlights

  • 1Announced a two-for-one (2-for-1) stock split of its common stock.
  • 2Stockholders of record on March 1, 2006, will receive one additional share for each share held.
  • 3The new shares resulting from the stock split will be distributed on April 7, 2006.
  • 4The Board of Directors declared an increased quarterly dividend of 25 cents per share on a pre-split basis.
  • 5The increased dividend is payable on April 7, 2006, to stockholders of record on March 1, 2006.
  • 6The dividend will be paid only on shares outstanding prior to the stock split, equivalent to 12.5 cents per share post-split.
  • 7Various registration statements (Form S-8, S-3, S-4) will be adjusted to reflect the stock split.

Frequently Asked Questions

SLB is implementing a two-for-one stock split, meaning that for every share an investor owns, they will receive an additional share. This is typically done to lower the per-share trading price, making the stock more accessible to a wider range of investors and potentially increasing its liquidity.

The stock split is effective for shareholders of record as of the close of business on March 1, 2006. The additional shares will be distributed on April 7, 2006.

SLB's Board of Directors increased the quarterly dividend to 25 cents per share on a pre-split basis. However, this dividend will only be paid on shares outstanding *before* the stock split. After the split, this equates to a dividend of 12.5 cents per share.

A stock split itself does not change the total market value of an investor's holdings or the company's market capitalization. While the number of shares doubles and the price per share halves, the overall value remains the same immediately after the split.