Which of the following statements correctly describes aspects of “spin-off” transactions as we discussed in lectures? a)
Posted: Mon Nov 15, 2021 5:03 pm
Which of the following statements correctly describes aspects of
“spin-off” transactions
as we discussed in lectures?
a) They always involve all shares in the newly listed entity
being directly held by
shareholders in the original firm that conducted the
spin-off.
b) A spin-off transaction would never follow an equity carve-out
transaction.
c) A spin-off may allow the market to better value two business
segments that have quite
different growth prospects and/or capital expenditure
requirements.
d) None of the above statements are correct.
e) More than one of the above statements are correct.
Can you please explain the why the statements might be wrong?
Thank you
“spin-off” transactions
as we discussed in lectures?
a) They always involve all shares in the newly listed entity
being directly held by
shareholders in the original firm that conducted the
spin-off.
b) A spin-off transaction would never follow an equity carve-out
transaction.
c) A spin-off may allow the market to better value two business
segments that have quite
different growth prospects and/or capital expenditure
requirements.
d) None of the above statements are correct.
e) More than one of the above statements are correct.
Can you please explain the why the statements might be wrong?
Thank you