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Spin-offs occur when the equity owners of the parent company receive equity stakes in the newly spun off company. [6] For example, when Agilent Technologies was spun off from Hewlett-Packard (HP) in 1999, the stockholders of HP received Agilent stock. A company not considered a spin-off in the SEC's definition (but considered by the SEC as a ...
Equity carve-out (ECO), also known as a split-off IPO or a partial spin-off, is a type of corporate reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining management control. [1] [2] Only part of the shares are offered to the public, so the parent company retains an equity stake in the subsidiary ...
The terms "demerger", "spin-off" and "spin-out" are sometimes used to indicate a situation where one company splits into two, generating a second company which may or may not become separately listed on a stock exchange.
The three types of corporate divisions are commonly known as spin-offs, split-offs and split-ups. The spin-off involves a distribution of property to shareholders without the surrender of any stock, which thus resembles a dividend. The split-off resembles a redemption because the shareholders have relinquished stock of the distributing corporation.
News of Comcast’s cable spin-off broke Tuesday, coming less than a month after the company told investors on Oct. 31 it was exploring the scenario. Comcast is not holding a conference call with ...
A Reverse Morris Trust is used when a parent company has a subsidiary (sub-company) that it wants to sell in a tax-efficient manner. The parent company completes a spin-off of a subsidiary to the parent company's shareholders. Under Internal Revenue Code section 355, this could be tax-free if certain criteria are met. The former subsidiary (now ...
When Valero Energy Corp. (NYSE: VLO) reported second quarter earnings last July, the company said it would seek a tax-efficient spin-off of its retail business. In a presentation to investors ...
Corporate spin-off, a type of corporate action that forms a new company or entity; Government spin-off, civilian goods which are the result of military or governmental research NASA spin-off, a spin-off of technology that has been commercialized through NASA funding, research, licensing, facilities, or assistance