A division of a company that is sold out to new investors. Finance By Example (Archives): Olivetti Sells Losing Assets Why Are IBM and Sears Selling Prodigy? Quaker Oats Sells Snapple at A $1.4 Billion Loss
The surrender, voluntarily or involuntarily, of ownership of property or an interest, therein. Alternately, a court order to give up possession or the right to property such as in the case of an antitrust action.
A process of removing a utility function, such as distribution or generation, from other utility functions by selling the ownership of assets related to that function. This is most commonly used in reference to a utility's sale of generating facilities.
is the process of selling or spinning off aspects of business lines. Utilities may divest generation assets voluntarily to refocus their business efforts or in response to regulatory or legislative directives as part of a stranded cost determination or market power mitigation plan.
On January 8, 1982 AT&T signed a Consent Decree stipulating that on midnight December 30, 1983, AT&T would divest itself of its 22 telephone operating companies. Those 22 companies, or BOCs, were formed into seven regional holding companies called RBOCs. The main terms of Divestiture are: The BOCs weren't allowed into long distance, equipment manufacturing, or information services. AT&T was not allowed into local service (to compete with the BOCs), but it could continue to manufacture equipment.
The selling of major assets (power plants, transmission equipment or distribution lines). Voluntary divestiture may occur in the natural course of doing business. Forced divestiture occurs when a public utility commission requires that a utility sell its assets to diminish the possibility of creating market power.
the process of requiring monopolistic utilities to spin off one segment of their business. Done to ensure that uncompetitive advantages created by former government actions are removed, so that competition can develop. A utility with generation, transmission and distribution facilities, for example, might be forced to sell off its generation. Also known as vertical disaggregation.
On Jan. 8, 1982, AT&T signed a Consent Decree with the U.S. Department of Justice. It stipulated as of Jan. 1, 1984, AT&T would divest itself of its 22 telephone operating companies which were formed into seven regional holding companies of roughly equal size. The FCC decision mandated that Bell Operating Companies (BOCs) provide all long distance carriers access arrangements equal in type, quality and price to the access provided AT&T.
Transfer and/or liquidation of state-owned enterprises, i.e. their assets and investments through sale, employee buy-out, etc.Â³ä÷óæåííÿ, âèëó÷åííÿ (âëàñíîñò³)Ïåðåäà÷à ³/àáî ë³êâ³äàö³ÿ âëàñíîñò³ äåðæàâíèõ ï³äïðèºìñòâ, òîáòî ¿õ àêòèâ³â òà ³íâåñòèö³é, øëÿõîì ïðîäàæó, âèêóïó ðîá³òíèêàìè ï³äïðèºìñòâà òîùî.
The January 1, 19984 antitrust consent decree signed by AT&T, wherein AT&T agreed to divest itself of Bell Telephone and other companies. Divestiture also placed intraLATA restrictions on AT&T and interLATA restrictions on the RBOC's.
The break-up of AT&T that mandated the company's reorganization of 22 Bell operating companies (BOCs) into seven regional Bell holding companies: Pacific Bell, Southwestern Bell, Bell South, Ameritech, Bell Atlantic, US WEST and NYNEX. These companies now consist of Verizon, SBC, Qwest and Bell South.
The landmark event in the telecommunications industry, divesture occurred when AT&T divested itself of its local service operations on January 1, 1984. At this time, seven Regional Holding Companies (RHCs) were formed to won and operate the 22 local Bell Operating Companies. AT&T retained the long distance service and the equipment manufacturing unit. The Divestiture decree, called the Modified Final Judgment, set the framework for the future of the entire industry.
1. Refers to the sale of a utility's generation or transmission assets. 2. The stripping off of one utility function from the others by selling (spinning-off) or in some other way changing the ownership of the asset related to that function--most commonly associated with spinning-off generation assets so they are no longer owned by the shareholders that own the transmission and distribution assets. (See also Disaggregation.)
The separation of one utility function from others by selling or changing ownership of assets related to that function. Most commonly associated with spinning-off generation assets so they are no longer owned by the regulated utility that owns the transmission and distribution assets.
The break-up of AT&T as a result of a settlement between the U.S. department of Justice and AT&T. Prior to 1984, AT&T was comprised of Bell Labs, AT&T Long Lines, Western Electric, and twenty-two Bell Operating Companies.
When a company sells off a subsidiary or assets of the business to a buyer which acquires the subsidiary or assets. This differs from a spin-off arrangement under which a company establishes a subsidiary as a new and separate business and distributes shares in the new company to its shareholders
Disposal of an investment by sale, liquidation or other means. This legal term is also used to describe a corporation's systematic distribution of large blocks of another company's stock which were being held as an investment.
an order to an offending party to rid itself of property; it has the purpose of depriving the defendant of the gains of wrongful behavior; "the court found divestiture to be necessary in preventing a monopoly"