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DewDiligence

10/21/11 6:21 PM

#129009 RE: mouton29 #129007

Quiz answer: You’re on the right track but at the wrong station. The stumbling block for ABT’s pharma successor company to be acquired is not ownership, but rather time. If the successor company were acquired close in time to when the spinoff is implemented, the IRS could deem the spinoff a sham transaction intended to evade a capital-gains tax and punish ABT accordingly.