Spin-Off

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Spin-Off

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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Don Luskin, chief investment officer of TrendMacrolytics, an economics research and consulting service that provides analysis to institutional investors, said the GE spinoff "is a very necessary idea.
Goldman estimated the combined value of New Pepsi and the fast-food spinoff at $42.
a close tracker of spinoff activity and a leading adviser on spinoff transactions, 41 spinoffs were completed in 1996, with a total value of $94 billion.
The C shareholders voted on the merger after the spinoff (the merger could not be consummated without shareholder approval), and they were free to vote for or against the merger.
All accrued benefits as of the spinoff date, as well as all early retirement subsidies, annuity forms and other rights and features attached to these benefits would be included.
It was important for Deloitte to know, as they're a large growing player in the lucrative Spinoff space; e.
said that Thursday's rise in the stock price ``has already discounted any benefit from a spinoff, and we see Pepsico as a mid-$30's performer.
The ruling provided that an analysis of the overall spinoff transaction required viewing the cash as in redemption of a portion of the distributing corporation's stock.
Meanwhile, TSR's top recommended Spinoff stock picks have produced a return of +19% YTD from the Spinoffs that they will have analyzed for clients.
To request their Top 3 Spinoff Ideas & Spinoff Calendars, click here Oor by geography below:
Multi-sector portfolio managers and analysts want our bottom-up research and top ideas as the Spinoff Calendar outlook for Break-ups is larger and more technical than ever" commented, Ryan Mendy, Chief Operating Officer of TSR.