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The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

When a spin-off occurs, the shareholders of the parent corporation are not required to surrender any of their parent corporation stock in exchange for the subsidiary's stock.

In the event that the distribution of stock to the parent corporation's shareholders amounts to a dividend, the distribution can be taxed pursuant to provisions of Income Tax statutes.

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42 a share, which included six months' earnings of the business spun off as First Colony Corporation (NYSE: FCL) on July 1, 1993, and nine months' earnings of the Albemarle businesses as well as a net after-tax credit of $2.
1 million compared to 1993 second-quarter sales of $495 million, which included sales of the businesses spun off as Albemarle.
Walker, who is expected to serve as president and chief executive officer of a newly formed subsidiary, General Cable Corporation ("GCC"), which will be spun off to Penn Central shareholders pursuant to a previously announced proposal that was approved in principle today by Penn Central's board.
Because Hospitality and Real Estate Services are expected to be spun off months before TDS, by including VNG in Hospitality, CD will distribute about two-thirds of its EBITDA to its shareholders in the first two spin-offs.
The manufacturing businesses which would be spun off consist of the electrical and electronic wire and cable manufacturing operations conducted by General Cable Company's Guardian Products Divison, Capital Wire and Cable Company and Carol Cable Company; the communications cable manufacturing operations conducted by General Cable's telecommunications division; the materials handling and marine equipment businesses conducted by Marathon LeTourneau Company; the galvanized steel wire products business conducted by Indiana Steel & Wire Company and the die and extrusion tooling business conducted by General Cable's Genca division.
A number of the matters discussed in this document that are not historical or current facts deal with potential future circumstances and developments, in particular, information regarding the combined company, and the local telecommunications business to be spun off, including the expected capital structure and financial characteristics of the local telecommunications business.