UPS WILL OFFER STOCK TO PUBLIC

    U.S. express delivery giant United Parcel Service has announced plans to
offer 10 percent of the company’s common stock to the public by year end.
    James P. Kelly, chairman and chief executive officer of UPS, said public
stock will give the company "greater financial flexibility to respond to
changes in global market conditions, including the ability to make
significant strategic acquisitions in important markets around the world."
    Kelly said UPS has 560 million to 570 million shares outstanding, valued
at about $47 per share. That values the company at $26.3 billion to $26.8
billion.
    UPS said it will create two classes of stock in the deal. The company
plans to sell Class B shares through an initial public offering on the New
York Stock Exchange. The total amount of shares offered will represent 10
percent of the equity and 1 percent of the voting power in UPS.
    Current shareholders will retain 99 percent of the company’s voting
power in Class A shares, carrying 10 votes per share.
Morgan Stanley Dean Witter will manage the offering.