Broomfield, Colorado-based Hathaway Corp says that its board of directors is considering the spin-off of its Global Software Inc subsidiary, to raise the latter’s profile in its marketplace. Under the proposed transaction, Hathaway will distribute all of the outstanding shares of Global to Hathaway shareholders. And, if the transaction is completed, Global will trade as a separate, publicly-owned company. The final decision will be made by Hathaway’s board and will depend on Global’s trading performance, market conditions, and the obtaining of a bank line of credit for the company. In April 1990, Hathaway requested a ruling from the Internal Revenue Service regarding the tax consequence of the spin-off, and this June the ruling was issued. Global reported revenues of $26m for the year to June 30, representing 50% of Hathaway’s total sales. For the nine months ended March 31, Global turned over $17m, 47% of Hathaway’s sales.
