<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
______________
Current Report
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): June 3, 1998
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ATLANTIC RICHFIELD COMPANY
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-1196 23-0371610
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(Commission File Number) (IRS Employer
Identification No.)
515 South Flower Street, Los Angeles, California 90071
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (213) 486-3511
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Not Applicable
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(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
------------
Consistent with its strategy to focus on growth in its core oil and gas
businesses, ARCO has announced that it has reached agreement with ARCO Chemical
Company to reduce its 82.2 percent ownership of ARCO Chemical Common Stock to 50
percent. On June 3, 1998, ARCO Chemical Company filed with the SEC a
Registration Statement on Form S-3 registering approximately 26 million shares
of ARCO Chemical Common Stock to be sold by ARCO in the public offering.
Item 7. Financial Statements and Exhibits
---------------------------------
27.1 Restated Financial Data Schedule for the quarterly period ended
September 30, 1997.
27.2 Restated Financial Data Schedule for the quarterly period ended
June 30, 1997.
27.3 Restated Financial Data Schedule for the quarterly period ended
March 31, 1997.
27.4 Restated Financial Data Schedule for the fiscal year ended
December 31, 1996.
27.5 Restated Financial Data Schedule for the fiscal year ended
December 31, 1995.
27.6 Restated Financial Data Schedule for the quarterly period ended
September 30, 1996.
27.7 Restated Financial Data Schedule for the quarterly period ended
June 30, 1996.
27.8 Restated Financial Data Schedule for the quarterly period ended
March 31, 1996.
99.1 Press Release dated June 3, 1998.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ATLANTIC RICHFIELD COMPANY
/s/ ALLAN L. COMSTOCK
------------------------------------
Allan L. Comstock
Vice President and Controller
Dated: June 4, 1998
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0
1
<COMMON> 403
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0
1
<COMMON> 403
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0
1
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0
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<PAGE>
[LOGO OF ARCO] NEWS
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FOR IMMEDIATE RELEASE June 03, 1998
ARCO CONTINUES FOCUS ON OIL AND GAS OPERATIONS;
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REDUCES HOLDINGS IN ARCO CHEMICAL COMPANY TO 50 PERCENT;
- ---------------------------------------------------------
MOVE LOWERS OUTSTANDING DEBT
- ----------------------------
LOS ANGELES - Consistent with its strategy to focus on growth in its core oil
and gas businesses, ARCO (NYSE:ARC) announced today that it has reached
agreement with ARCO Chemical Company (NYSE: RCM) to reduce its 82.2 percent
ownership of ARCO Chemical common stock to 50 percent.
The transaction is expected to be priced and close in mid to late July.
"While ARCO Chemical will continue to be an important part of the worldwide
chemical industry and a proven leader in its markets, the decision to reduce our
holdings puts us in a far better position to invest in and strengthen our
worldwide oil and gas operations, as well as continue to grow our West Coast
refining and marketing business," said ARCO Chairman and Chief Executive Officer
Mike R. Bowlin.
Under the agreement, ARCO will first sell in a secondary offering the amount of
stock that, when combined with a repurchase by ARCO Chemical, will result in a
reduction of ARCO's holdings of ARCO Chemical stock to 50 percent. At
yesterday's closing price of $56.31 per share, this would total about 24 million
shares worth $1.3 billion, assuming no exercise of the underwriters'
over-allotment option.
ARCO Chemical Company will then purchase up to $850 million of its common stock
from ARCO. If the offer were assumed to be completed at yesterday's closing
price, the purchase would total about 15 million shares. ARCO owns about 80
million of the 97 million currently outstanding shares of ARCO Chemical stock.
If the 10 percent over-allotment option is exercised, the amount of the stock
that ARCO Chemical will buy from ARCO will be reduced to approximately $600
million, assuming yesterday's closing price. Shares sold to ARCO Chemical will
be sold at the same price they are offered to the public in the secondary
offering.
The transaction will result in ARCO deconsolidating its interest in ARCO
Chemical, which removes about $1 billion of ARCO Chemical debt from ARCO's
financial statements. In addition, again assuming yesterday's closing price,
the after-tax proceeds of approximately $1.4 billion from the ARCO Chemical
transaction will be used to repay short-term borrowings to be incurred in
conjunction with ARCO's $2.6 billion cash tender offer for Union Texas Petroleum
common stock, as previously announced.
ARCO Chemical, headquartered in Newtown Square, Pa., was a wholly owned
subsidiary of Los Angeles-based ARCO until it went public in a 1987 offering.
ARCO Chemical is a leading worldwide manufacturer and marketer of propylene
oxide and derivatives and other intermediate chemicals.
# # #
A registration statement relating to these securities will be filed with the
Securities and Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective.
1 of 2
<PAGE>
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities in any state
in which such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.
Except for historical facts, the matters discussed in this press release
concerning the consummation of the public offering and stock repurchase and the
availability and use of after-tax proceeds from the public offering and stock
repurchase to repay short-term borrowing to be incurred in conjunction with
ARCO's cash tender offer for Union Texas Petroleum constitute forward-looking
statements.
Except for the historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties. Actual results could differ materially based on numerous
factors, including the volatility and level of crude oil and natural gas prices,
the volumes and margins realized by the company for its refined products and
petrochemicals, the effects of political and regulatory instability on the
company's operations, changes in capital market conditions, interest rates, and
financial markets, and other risks detailed from time to time in the company's
SEC reports, including the report on Form 10-Q for the quarter ended March 31,
1998.
For information contact: Al Greenstein, (213) 486-3384,
e-mail to: [email protected]
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[LOGO OF ARCO]
Copyright (c) 1998 - Atlantic Richfield Company - All Rights Reserved
ARCO 515 South Flower Street, Los Angeles, CA 90071-2256 (213)486-3511
