Electronic Data Systems Corp is to become an independent company once more: General Motors Corp yesterday announced that it will spin off the company to its Class E shareholders in a tax-free exchange of shares. The spin-off is subject to a favourable vote by holders of General Motors common stocks. The Class E shares rank pari passu with all other classes of General Motors shares in any vote, restructuring, break-up or liquidation, but the dividend they pay is tagged to the performance of Electronic Data Systems. General Motors would continue to retain the company for all its information technology needs. Target date for the separation is the first half of next year. General Motors may take a one-off dividend from Plan, Texas-based Electronic Data Systems ahead of the spin-off.
