Large Cap Watch List member American Standard Companies Inc. (ASD) approved the tax-free spinoff of its Vehicle Control Systems business into a new publicly traded company to be called WABCO (NYSE:WBC). WABCO is a leading global producer of electronic braking, stability, suspension and transmission control systems for commercial vehicles and was originally part of the Westinghouse Air Brake Company founded in 1869.
As part of its approval, the board authorized a dividend on its common stock of one WABCO share for every three shares of American Standard and established the close of business on July 19, 2007 as the record date. The distribution will be made as set forth in the information statement, which will be mailed prior to the distribution to shareholders of record on the record date. The distribution is expected to take place after close of business on July 31, 2007. American Standard will distribute cash to shareholders in lieu of fractional shares of WABCO stock.
So now the Watch List will have an extra security in it. I’ll probably end up taking it off the next time it I rebalance the list, because typically I require more than a few months of data before putting something in.