NEWS

By Joseph A. Giannone

NEW YORK, May 12, 2004 (Summary of Reuters Article) - Stock analysts and bankers say Halliburton is expected to sell most of its Kellogg Brown & Root division after asbestos-related bankruptcy proceedings are completed; the sale could attract a higher Halliburton stock price. Sale of KBR construction and outsourcing units is possible; investors say both businesses have thin margins and would therefore be worth selling. But Halliburton is not expected to sell KBR's U.S. government contracting business, despite negative publicity over its activities in the middle east. CEO David Lesar said earlier that no decision has been made on the possible sale of KBR assets.