MeadWestvaco Corp. has set April 24 for the spin off date for its Consumer & Office Products business.
Immediately after the spin off, the Consumer & Office Products Division will merge with ACCO Brands Corp.
Under the agreement, MeadWestvaco stockholders will receive 0.33 share of ACCO Brands Corp. for each share of MeadWestvaco share they own.
The Richmond-based paper and packaging company said it had received a letter from the IRS saying that the distribution of shares of its Consumer & Office Products division will be tax free. In addition, the ruling says the $460 million in cash the company expects to receive on the transaction will also be on a tax-free basis.
The spin off and merger are expected to close April 30 and become effective May 1, subject to remaining conditions, including approval of the merger by the ACCO Brands board of directors.
Between April 24 and the expected close date, there will be two markets in MeadWestvaco common stock on the New York Stock Exchange: a “regular way” market and an “ex-distribution” market.
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