ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, January 10, 1996 TAG: 9601100143
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
Financial information provider Dun & Bradstreet Corp. said Tuesday it will split into three companies, divesting itself of the compiler of Nielsen television ratings and some other operations.
Dun & Bradstreet will continue to exist and provide the business information for which it has been known for 155 years. A second company, Cognizant Corp., will offer advice and information to the health care and technology industries. It will include Nielsen Media Research.
A third, called A.C. Nielsen, will be created to provide marketing data to companies that produce consumer packaged goods.
Dun & Bradstreet's move follows decisions last year by several large companies - including AT&T Corp. and ITT Corp. - to spin off operations and become more nimble and competitive.
``We've been planning this for well over a year,'' said Robert E. Weissman, chief executive officer. ``If anything, as others began to do it, it was confirmation to us that this wasn't a crazy idea.'' The announcement came after the close of financial markets.
The split by Wilton, Conn.-based Dun & Bradstreet will result in a fourth-quarter charge that will reduce earnings $448 million before taxes. It will cause a net loss in the fourth quarter, Weissman said, but he did not say how much.
Dun & Bradstreet's strategy revolves around the belief that focus and speed are critical to being competitive, and splitting the company will let all three companies thrive.
Weissman said the operations forming Cognizant are fast growing ``and like a racehorse should be allowed to run.'' In contrast, he said, the Dun & Bradstreet businesses are solid but growing more slowly.
The split will result in a work-force reduction, which the company said will come to less than 2 percent of its 50,000 employees. Weissman said cuts from layoffs should be minimal.
Dun & Bradstreet in its new form will generate annual revenue of $2 billion. It will comprise Dun & Bradstreet Information Services; Moody's Investors Service, the bond rating company; and Reuben E. Donnelley, the Yellow Pages provider.
Cognizant will comprise IMS International, which provides marketing information to health care companies; Nielsen Media; and Gartner Group, a high-tech advisory firm. It will have $1.4 billion in revenue.
A.C. Nielsen will have revenue of $1.3 billion.
Weissman will lead Cognizant. Other D&B executives will head the new D&B and A.C. Nielsen.
LENGTH: Medium: 54 linesby CNB