DOW JONES NEWSWIRES
Communications-product maker Harris Corp. (HRS) said Tuesday its
board has approved the spinoff of majority-owned wireless-network
services unit Harris Stratex Networks Inc. (HSTX).
The company said in December it was weighing a spinoff and other
alternatives for the unit, which was formed in January 2007 by
combining Stratex Networks and Harris' microwave communications
division.
"Harris Stratex Networks has made significant progress since its
formulation, but we do not believe the business has a strong
strategic fit with the rest of the Harris portfolio," Harris Chief
Executive Howard L. Lance said at the time.
Lance said Tuesday that the board determined a spinoff dividend
is in the best interest of Harris Corp. shareholders.
The distribution of about 56% of Harris Stratex Networks owned
by Harris Corp., or about 32.9 million shares, will be in the form
of a stock dividend payable May 27.
Harris Corp. shareholders will get about 0.24 shares of Harris
Stratex Networks for every Harris Corp. share they own.
Harris Stratex's losses have been mounting in recent quarters
amid write-downs, and last year the company had to restate
financial results back to 2004, reducing shareholders' equity in
the process.
Harris' shares closed Tuesday at $27.88 and Harris Stratex's
closed at $4.05. Neither has traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com