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A complete asset or investment disposal such as outright sale or liquidation.


The removal of assets from a person or firm's balance sheet through sale, exchange, closure, bankruptcy, or some other means. Divestiture may occur when a person or company has acquired more than he/she/it can properly administer. This sort of divestiture may occur slowly; for example, a corporation may slowly sell subsidiaries to concentrate exclusively on its core competence. On the other hand, divestiture may occur because a person or company has become cash poor and needs to build liquidity very quickly.


The sale, liquidation, or spinoff of a division or subsidiary. For example, a firm may decide to divest itself of a division in order to concentrate its managerial efforts on more promising segments of its business.
References in periodicals archive ?
The results may also help regulatory authorities understand how divestitures could enhance company performance or otherwise to improve future regulatory and monitoring purposes.
The Department has advised the Board that in light of the proposed divestitures, consummation of the proposal would not have a significantly adverse effect on competition in any relevant banking market.
Companies can pursue divestitures to reverse earlier efforts to diversify through acquisition.
Based on all the facts of record, the Board concludes that the considerations discussed above, including the proposed divestitures, the number and strength of competitors in the market, the strong presence of bank-like credit unions, the distortional effects of out-of-market deposits, the attractiveness of the market for entry by out-of-market competitors, and other factors mitigate the potentially adverse competitive effects in the Salt Lake City banking market.
said the higher divestiture rate will make it less likely the San Francisco-based bank will achieve its earlier target of saving $700 million annually in costs, but the overall effect will be minimal.
Accordingly, based on all the facts of record, and subject to completion of the proposed divestitures and compliance with the related commitments, the Board has determined that competitive factors are consistent with approval of the proposal.
While expected to be modestly dilutive, about 5%-7% in 2006, the divestitures should reduce our exposure to more cyclical markets and position PerkinElmer to deliver higher revenue and EPS growth.
Company in discussion with investment banks regarding potential divestitures of non-core businesses.
Empire Investment Holdings, LLC, a private investment firm focused on acquiring and growing corporate divestitures, has acquired the Upstate New York Technology Services business unit of IKON Office Solutions, Inc.
The Rating Outlook revision to Stable recognizes the anticipated reduction in debt and leverage after SPX completes its divestitures of Edwards Systems Technology and Kendro.
Added Black, "We see no change in the underlying performance of our businesses and continue to expect diluted earnings per share from continuing operations for the full year 2005 excluding charges related to the restructuring and divestiture program and the gains associated with completed divestitures to be in the range of $3.
Combined with fiscal first quarter 2005 divestitures, Fitch would anticipate modest improvement in credit metrics this year.