Charlotte-based Babcock & Wilcox says it’s mulling split

Charlotte energy company Babcock & Wilcox said Wednesday that it’s considering a split into two publicly traded companies, sending its shares up nearly 8 percent.

The potential move would separate the company’s power generation business from its government and nuclear operations business.

Babcock & Wilcox said its board wants to determine whether a split would increase shareholder value and improve business focus. The company has hired investment bank JPMorgan Chase and law firms Wachtell, Lipton, Rosen & Katz and Jones Day as advisers.

Babcock & Wilcox said there is no guarantee a separation will occur and didn’t outline the timing if one would take place. The company plans to provide more information during its third-quarter earnings conference call in early November.

Company spokeswoman Aimee Mills emphasized that no decision has been made.

“The board is going through the process of evaluating whether a separation is in the best interest of the businesses,” she said.

After Wednesday’s announcement, the shares climbed more than 7 percent to $29.68 in morning trading, and closed up nearly 8 percent, at $29.90. Through Tuesday, the shares were down 19 percent this year.

Babcock & Wilcox itself was spun off from McDermott International in 2010. As part of that move, the company shifted its headquarters to Charlotte from Lynchburg, Va.

The company, which has about 175 employees at its Ballantyne headquarters, offers advanced engineering, manufacturing and construction services in a range of energy fields, from nuclear to coal.

This story was originally published October 1, 2014 at 9:33 AM with the headline "Charlotte-based Babcock & Wilcox says it’s mulling split."