No. of Recommendations: 1
" I wonder if he considered spinning it out to shareholders, as I suggested.
This idea comes up frequently, but is it possible for a company to spin off a minority holding of publicly traded shares of an investee?
If so, would the shareholders get Berkshire's cost basis? Tax implications? What would the whole transaction cost?"
I did it in the 80s but who knows what the rules are now? I suspect I would have sold the aapl 250 calls and allowed the stock to get called away IF he had spun the apple out. When I did this Shareholders received the parent companies cost basis and we never got audited on that transaction. The companies CPA signed off on the transaction, so I assume it was legit, OR, we didn't get caught.
