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Split-Off

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Split-Off
A relatively rare situation in which a parent company offers to its shareholders stock in a subsidiary in exchange for a comparable amount of stock in the parent company. This allows the parent company to divest itself of the subsidiary. See also: Splitoff IPO.


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In a research note, Exane BNP Paribas said a split-off of the fixed-line network was unlikely, and Telecom Italia's management and some shareholders, including Telefonica, opposed it.
Kraft Foods announced that it has commenced its exchange offer related to the split-off of its Post cereals business.
Before restructuring, the taxpayer investigated several options, including (1) maintaining the status quo, (2) a leveraged recapitalization or a full recapitalization with a spin-off of the lesser business divisions, and (3) divestiture of the lesser business divisions, including a targeted stock offering or an initial public offering (IPO) with a split-off or spin-off.
 
 
 
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