|
AT&T split will be tax-free
|
 |
May 30, 2001: 11:24 a.m. ET
IRS rules AT&T, shareholders, won't be taxed for spinoff of AT&T Wireless
|
NEW YORK (CNNfn) - AT&T Corp.'s spinoff of AT&T Wireless will be tax-free for AT&T and its shareholders, the company said Wednesday.
AT&T, the nation's largest long-distance phone company, said the Internal Revenue Service has ruled that neither AT&T nor its shareholders will be taxed when AT&T gives much of its interest in AT&T Wireless to shareholders in the form of a dividend, a process AT&T expects to complete by mid summer.
AT&T Wireless (AWE: down $0.28 to $17.02, Research, Estimates) is currently a tracking stock for the New York-based telecommunications company's wireless division.
AT&T (T: down $0.12 to $20.56, Research, Estimates) said Tuesday it completed its offer to exchange AT&T Wireless stock for AT&T common stock. About 372.6 million shares of AT&T common stock were tendered in exchange for about 438.2 million shares of AT&T Wireless.
The separation of AT&T Wireless is part of AT&T's plan to split its businesses -- wireless, consumer, business and broadband -- into separately traded companies. AT&T will hold about $3 billion in AT&T Wireless stock after the split-up. 
|
|
|
|
|
|
AT&T
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
