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Technology Stocks : Retek [RETK], spinoff from [HNCS], EDI Software Makers
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To: Bill Hardison who wrote (56)3/14/2000 10:23:00 AM
From: bullztrader  Read Replies (2) of 59
 
Bill, This from the HNCS site. The distribution may never take place.
Has a distribution of HNC's Retek stock to HNC's stockholders been authorized?

HNC's Board of Directors has not yet decided to authorize a distribution of HNC's Retek common stock to HNC's stockholders. For various reasons, the Board may ultimately decide that it is not in HNC's best interests to distribute the Retek stock. As stated in Retek's IPO prospectus, a distribution of the Retek stock is subject to the fulfillment of a number of conditions. One of the most significant conditions was that HNC must receive a written revenue ruling from the Internal Revenue Service to the effect that HNC's distribution of its Retek stock to HNC's stockholders will qualify as a tax-free spinoff transaction under Section 355 of the Internal Revenue Code. As of December 1999, HNC is in the process of preparing an inquiry for submission on this point. It is management's estimate, based upon information received from its professional advisors, that the revenue ruling process may take several months and is not likely to be resolved until later in thesecond quarter of 2000, and may take even longer. There can be no assurance that the IRS will rule that the distribution of Retek stock by HNC can be effected on a tax-free basis.

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