Compuserve To Go Public

CompuServe, the Internet service provider, has announced that it will be split off from its parent company H&R Block with a public stock offering in April 1996.

This will result in two independent, publicly traded companies. The plan involves an initial public offering of less that 20% of CompuServe. Compuserve believe that the move will enable each company to pursue the growth possibilities in their respective markets.

Richard Brown, president and chief executive of H&R Blocks, said: “CompuServe will benefit from enhanced access to equity capital to support its rapid growth…H&R Block will benefit from a greater management focus and additional resources to capitalize upon its extraordinary tax franchise and growing financial services business unit.”

CompuServe: http://www.compuserve.com/