Time Warner Inc. (TWX) said that its board has approved the final distribution ratio and declared a pro rata dividend of the shares of AOL common stock owned by Time Warner that will result in the complete legal and structural separation of the two companies.
The company has set Dec. 9 as the effective date of the spin-off of AOL. The company's shareholders of record Nov. 27 will receive one share of AOL common stock for every eleven shares of Time Warner common stock they hold.
The AOL spin-off has been structured to qualify as a tax-free dividend to Time Warner stockholders for U.S. federal income tax purposes.
In addition, Time Warner said that its board declared a regular quarterly cash dividend of $0.1875 per share on its common stock, payable in cash on December 9 to stockholders of record at the close of business on November 27.
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