spinoff


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Spin-Off

A situation in which a company offers stock in one of its wholly-owned subsidiaries or dependent divisions such that subsidiary or division becomes an independent company. The parent company may or may not maintain a portion of ownership in the newly spun-off company. A company may conduct a spin-off for any number of reasons. For example, it may wish to divest itself of one industry so it can expand into another. It may also simply wish to profit from the sale of the subsidiary. A spin off should not be confused with a split off.

spinoff

The distribution to stockholders of the stock of a subsidiary held by a parent company. Usually the distribution is not taxable to the stockholders until the new shares have been sold. Compare splitoff. See also partial spinoff.
References in periodicals archive ?
TSR also has a unique track record and is the only firm in the world to cover every pure corporate Spinoff.
Porrello said he doesn't believe the spinoff of Travelers or the possible spinoff of Employers Re portend a move away from convergence.
In its fundamentals, a spinoff is set up as a standalone business with ownership given to the parent's existing shareholders through a distribution of common stock in the new business.
The minimum "bullet-proof" asset transfer is the amount a financially sound insurance company would charge to annuitize the spinoff benefits, because an annuity purchase would be necessary if the plan were to terminate.
Pepsico shares rose as much as 12 percent in heavy trading on The New York Stock Exchange on Thursday after The Wall Street Journal reported that a spinoff was expected.
In any spinoff involving receipt of property other than stock, careful planning is required to achieve the desired tax treatment - usually, corporate shareholders want dividend treatment and individual shareholders desire capital gains treatment.
At $656bn, around 54% of next year's due and potential Spinoffs will spin out of the United States.
Clients say, being fully global; TSR [The Spinoff Report[R]] demonstrably delivers hedge and mutual funds more ideas and analysis on Corporate Spinoffs than any other research firm", Jim Osman, CEO of TSR .
TSR's 57 Month Track Record Of Spinoff Recommendation
Released to clients recently, The Spinoff Report's 60 page Full Pre & Post Valuation Spinoff research of Tyco Intl' (TYC), The ADT Corp.
All the Spinoffs were recommendations fully tracked and analyzed ahead of break-up by The Spinoff Report's full research service provided to notable investors globally via their exclusive 40-50 page research reports on each and every global Spinoff.
NEW YORK & LONDON -- The Spinoff Report, the leading global pre-event investment advisor on Spinoffs, with buy/sell recommendations and monthly updated deal review calendars that currently include 116 upcoming Corporate Spinoffs sees hidden value in News Corp breaking-up.