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Anticompetitive Corporate Spin-Offs, Alexa Rosen Grealis
Anticompetitive Corporate Spin-Offs, Alexa Rosen Grealis
University of Miami Business Law Review
Section 355 of the Internal Revenue Code allows corporations to “spin-off” parent-controlled businesses tax-free. Traditionally an important tool for divestitures and restructurings with U.S. tax consequences, recent trends suggest section 355 is also of interest to firms facing US antitrust consequences. Statements and maneuvering by some such companies indicate firms are considering spinning-off businesses to avert liability and ‘break up’ on their own terms. Despite widespread renewed interest in using antitrust laws to break up large corporations, the antitrust implications of corporate spin-offs have thus far escaped scholarly notice and scrutiny.
This Note posits that it is a mistake to …