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Splitoff

   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.

splitoff
An exchange of the stock of a subsidiary for a pro rata surrender of stock in the parent corporation. A splitoff is similar to a spinoff, but in the case of the splitoff a smaller (or no) decline in the stock of the parent corporation should take place. Compare spinoff.


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A SPINOFF OR SPLITOFF from the parent corporation is a once-in-a-lifetime opportunity for a public company management team to start with a blank sheet of paper and build a board that will help deliver long-term shareholder value.
A splitoff is a tax-free, non-pro-rata distribution of a subsidiary's stock and is rarely done by public companies.
 
 
 
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