Split cleared by IRS

The E. W. Scripps Company says it has received a private letter ruling from the Internal Revenue Service confirming the tax-free status of the company's proposed separation into two publicly traded companies. The split will take the form of a pro-rata distribution of stock to Scripps shareholders in a new company, Scripps Networks Interactive, that will be created in the separation. The TV and newspaper groups will remain with the current company. The IRS letter confirmed that the distribution will be tax free to Scripps shareholders for federal income tax purposes. Scripps says it expects the separation to actually take place in June.

Add to: del.icio.us | Digg