RP shareholders are experiencing a transformation of their company from a diversified pharmaceuticals/chemicals/fibers to a purely pharmaceuticals holding. The acquisition gives RP the remaining ~50% of RPR that it didn't already own.Management has outlined its plans, already being implemented, to concentrate on the higher margin pharmaceuticals business and, in the process, spin off its low margins chemicals and fibers business. The spin off will take place piece-meal, with a partial offering in the first half of '98. As these business segments improve, the remainder will be spun off at a higher price.In two years time, RP will be entirely a pharmaceuticals firm, and a premier one at that. Consequently, shareholders can expect higher margins and returns on equity.
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