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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: cfoe who wrote (2980)	11/5/1999 8:13:00 AM
From: JGoren	Read Replies (2) \| Respond to of 13582

You missed the whole point. You split off the division and sell it; can happen at the same time. The effect is the same as a cash sale from a strategic point of view, but the shareholders receive, for example if Nokia were the buyer, Nokia stock in a tax-free transaction rather than cash going to Qualcomm. Because handset division is a divisible operating business, it can be done and it's not a taxable dividend. Usually you get more value in a stock transaction and it's tax free to shareholders.