logo
Share SHARE
FONT-SIZE Plus   Neg

MeadWestvaco Sets Record Date For Spin-off Of Consumer & Office Products Unit

MeadWestvaco Corp. (MWV) said its board has set a record date of April 24, 2012, for the proposed spin-off of its Consumer & Office Products business. The spin-off and merger are expected to close on April 30 and become effective May 1, 2012.

Under the terms of the spin-off, MeadWestvaco will distribute all of its shares of the Consumer & Office Products business to its stockholders by means of a stock dividend. As previously announced, immediately following the spin-off, the Consumer & Office Products business will merge with ACCO Brands Corp. (ABD), such that MeadWestvaco stockholders are expected to receive approximately 0.33 share of ACCO Brands for each share of MeadWestvaco they own.

MeadWestvaco also said it has received a private letter ruling from the Internal Revenue Service to the effect that, based on certain facts, assumptions, representations and undertakings set forth in the ruling, for U.S. federal income tax purposes, the distribution of the shares of the Consumer & Office Products business will generally qualify as a tax-free distribution to stockholders of MeadWestvaco Corporation. The ruling also concluded that the $460 million in cash MeadWestvaco expects to receive in connection with the transaction, subject to certain post-closing adjustments, will be received on a tax-free basis.

Upon completion of the merger, MeadWestvaco stockholders will collectively own 50.5 percent of the shares of ACCO Brands common stock on a fully-diluted basis, and ACCO Brands stockholders will collectively own 49.5 percent. The exact exchange ratio will be determined at the time of the distribution.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Rogers Communications Inc. and Shaw Communications Inc. are shutting down Shomi, the subscription video-on-demand service run by the two Canadian companies. Shomi said it will shut down operations on November 30, 2016, just two years since its launch. Shomi was viewed as a Canadian competitor to Netflix. Canadian women's fashion retailer Aritzia LP has raised C$400 million in its initial public offering on the Toronto Stock Exchange. Aritzia, Boston-based private equity firm Berkshire Partners LLC, and founder as well as CEO Brian Hill sold 25 million subordinate voting shares for C$16 per share, at the high end of its marketed range of C$14 to C$16 per share. American Express did not violate antitrust laws and can prohibit merchants from steering customers to credit cards with lower transaction fees, a federal appeals court ruled Monday. This ruling reverses an earlier trial court's judgment against the company and directs that court to enter judgment in favor of American Express.
comments powered by Disqus
Follow RTT