$10.20 Special dividend for ASH

[coolbloke]

Ashland Inc. Declares Special Cash Dividend; Authorizes Additional Share Repurchase Program
Thursday September 14, 12:16 pm ET

COVINGTON, Ky., Sept. 14 /PRNewswire-FirstCall/ -- The board of directors of Ashland Inc. (NYSE: ASH - News) today declared a special cash dividend of $10.20 per share that will be payable on October 25, 2006, to shareholders of record as of October 10, 2006. The specific consequences of stock trades made in the period between the record and payable dates are detailed later in this release.

ADVERTISEMENT
(Logo: http://www.newscom.com/cgi-bin/prnh/...13/ASHLANDLOGO )

The Ashland board also authorized the repurchase of up to an additional 7 million shares of the company's common stock, to be made from time to time in the open market. Repurchases under this new authorization may also be made under a rule 10b5-1 stock trading plan, which permits the company to repurchase stock during "blackout" periods.

On June 30, 2005, Ashland made certain representations of intent to the Internal Revenue Service with respect to stock repurchases as part of the transfer of Ashland's interest in Marathon Ashland Petroleum LLC to Marathon Oil Corporation. The actions taken by Ashland's board today are consistent with those representations. Following the completion of the newly announced share repurchase program, Ashland will have purchased almost 20 percent of the shares outstanding on June 30, 2005.

"This special dividend and additional share repurchase authorization demonstrate Ashland's commitment to building value for our shareholders," said James J. O'Brien, Ashland chairman and chief executive officer. "Perhaps more important, we expect to drive shareholder value by managing our businesses for growth and improved efficiency, while carefully examining the landscape for acquisitions."

Substantially all of the after-tax proceeds from the sale of Ashland Paving And Construction, Inc. were used to fund the completion of the January 25, 2006, share repurchase authorization, and will be used to fund the additional 7-million-share repurchase authorization and the special cash dividend. After-tax proceeds, after adjustment for changes in working capital and certain other accounts, are estimated to total $1.28 billion.

Because of the magnitude of the special cash dividend, the New York Stock Exchange has determined that the ex-dividend date will be October 26, 2006, the business day following the payable date for the special cash dividend. Ashland shareholders of record on the October 10, 2006, record date who subsequently sell their shares of common stock through the payable date for the special dividend will also be selling their right to receive such dividend. The special cash dividend is expected to be taxable to shareholders at the dividend tax rate and will not be considered a return of capital. Shareholders are encouraged to consult with their financial advisors regarding the circumstances of their individual tax situation.

Ashland Inc. (NYSE: ASH - News), a diversified, global chemical company, provides quality products, services and solutions to customers in more than 100 countries. A FORTUNE 500 company, it operates through four wholly owned divisions: Ashland Performance Materials, Ashland Distribution, Valvoline and Ashland Water Technologies. To learn more about Ashland, visit www.ashland.com.

FORTUNE 500 is a registered trademark of Time Inc.

Forward-Looking Statements

This news release contains statements related to future events and expectations and, as such, constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Ashland believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of the Company to be different from those expressed or implied above. The risks, uncertainties and assumptions which forward-looking statements are subject to include, but are not limited to, the effect of governmental regulations, the economy, competition and other risks contained in Ashland's Form 10-K, as amended, for the fiscal year ended Sept. 30, 2005, and in other reports and filings with the Securities and Exchange Commission, which are available on Ashland's Investor Relations website at www.ashland.com/investors or the SEC's website at www.sec.gov. Ashland expressly disclaims any duty to update or revise forward-looking statements.

[Hyper]

I predict a sell off on October 26

[coolbloke]

THIS THING IS HEAVILY SHORTED!

Settlement Date ShortInterest Avg DailyShare Volume Daysto Cover
Sep. 15, 2006 2,187,841 1,451,350 1.51
Aug. 15, 2006 1,268,033 992,786 1.28
Jul. 14, 2006 1,783,682 786,845 2.27
Jun. 15, 2006 2,379,960 854,338 2.79
May 15, 2006 2,027,351 1,059,147 1.91
Apr. 13, 2006 1,673,327 563,943 2.97
Mar. 15, 2006 1,622,658 727,979 2.23
Feb. 15, 2006 1,772,957 703,332 2.52
Jan. 13, 2006 2,887,033 761,126 3.79
Dec. 15, 2005 3,086,965 666,705 4.63
Nov. 15, 2005 2,706,855 940,643 2.88
Oct. 14, 2005 2,654,797 1,229,030 2.16

[amohedas]

This sounds like a heck of a deal.

[coolbloke]

They selling will be very less between October 10th and October 26th. So, the MM's have to cover before October 10th.

[coolbloke]

82.00% owned by Institutions. This is going to be very interesting!

[Blooey]

But when divis are given out, doesn't the price of the stock quickly ajust to discount it? i.e. The stock price will plunge $10.20, no?

[amohedas]

When a dividend is paid does the value of the stock drop accordingly?

I haven't ever held for divies so I'm not exactly sure how they work.

TIA

[amohedas]

LoL,

Blooey and I think alike.

[Blooey]

Originally Posted by amohedas

LoL,

Blooey and I think alike.

Yeah, but this old man's quicker!



By the way, what about this?

will be payable on October 25, 2006, to shareholders of record as of October 10, 2006

What does this mean, exactly?

a) Those who have shares ON the 10th, regardless of other days, will get the divi.

b) Those who have shares on the 10th, and hold them at least until the 25th, get the divi.

c) Those who buy shares anytime between the 10th and 25th get the divi, regardless of when they sell.

d) Those who buy shares anytime between the 10th and 25th, as long as they hold at least till the 25th, get the divi.

Confused!