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SPINOFF: Time Warner (TWX) and Time Warner Cable (TWC)
Issue:
On 3/27/2009 Time Warner Inc. (TWX) distributed 0.08367 shares of Time Warner Cable Inc. (TWC) for each share of TWX owned in a regular spinoff.
Cause:
This is a normal spinoff, followed by a reverse, 1-for-3 stock split for TWX. The information for this transaction was taken from the company's website at:
http://ir.timewarner.com/twcseparation.cfm
Resolution:
Enter the spinoff transaction in accordance with the instructions at
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff.
Here's the information you need for the spinoff:
1. Spinoff date - 3/27/2009
2. Parent company - Time Warner Inc. (TWX)
3. Remaining basis percentage of Parent Company, (TWX) - 75.2171
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Time Warner Cable Inc. (TWC)
6. Number of shares of TWC received - This will be the number of shares owned in TWX multiplied by 0.08367 (make sure to include fractional shares).
7. Price per share of daughter company - $24.97.
8. Cash received in lieu of fractional shares - take from broker statement.
After the above transaction has been entered, enter a reverse, 1-for-3 stock split for TWX as of 3/28/09.
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