RE: Hello Paco Perez Good point moose. What possible excuse could they have for making apparently no progress on the spin out for over a year. Anyone in contact with management?
Something funny or smelly in the April 4, 2012 Benton press release confirming the spinoff makes me wonder if management is talking out of 2 sides of its mouth without engaging its brain. Management stated that the spinoff is contingent on a ruling by the Canadian authorities that the transaction is tax neutral. That statement smells really bad. Why. Because the tax ruling is absolutely essential to this transaction. There is no way the transaction could be put through expeditiously or should be without this ruling. Benton has had this spinoff in the works for over a year and over a year ago the company announced its intention to request a tax ruling. If the company does not have a ruling in hand by now, it should have simply stated that they are waiting for a ruling. My take on this is that management has its eye on not proceeding and they simply threw in language about the tax ruling. If they dont have the ruling, the question is did they ever even request one, if they had no intention of doing the spinoff.