In October, when Dean Foods(DF) sold a stake in WhiteWave(WWAV) in an IPO, the company disclosed that it planned to spin off its remaining stake. Six months later, the company has set Thursday, May 23 as the distribution date for most of that stake. For each share of Dean Foods they own, shareholders will receive 0.25544448 shares of WhiteWave Class A common stock and 0.36380189 shares of WhiteWave Class B common stock. The Class B has not previously traded. In lieu of fractional shares, shareholders will receive cash, which will be subject to taxes. Dean will retain 34,400,000 Class A shares(representing approximately 20% of shares outstanding) which it intends to dispose of within 18 months.
As a result of the transaction, Dean will be removed from the S&P 500 Index, to be replaced by railroad Kansas City Southern(KSU). Both Dean and WhiteWave will join the S&P MidCap 400, replacing Kansas City Southern and Quicksilver Resources(KWK). These changes will take effect after the close of business on May 23.
Disclosure: The author holds no position in any stock mentioned
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