Comverse Technology Inc. or CTI (CMVT,CMVT.PK) Wednesday announced its plans to distribute all the shares of its wholly-owned subsidiary, Comverse, Inc., to its shareholders on a pro rata basis.
CTI is currently exploring the most efficient method of distribution and expects the distribution to occur in the second half of fiscal 2012. The company is also exploring alternatives to eliminate its holding company structure.
The distribution is subject to number of conditions including approval of CTI shareholders. After completion of the proposed distribution and prior to effect of any transaction that would eliminate the CTI holding company structure, current CTI shareholders would continue to hold their equity in CTI as well as own 100 percent of the equity of Comverse.
Tuesday, Comverse shares closed at $6.55 on the Nasdaq.
by RTT Staff Writer
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