MISPRICING IN TECH STOCK CARVE-OUTS 137Table 4.1
Sample of Carve-outsDistribution Negative
Issue Date Parent Subsidiary Date Stub?
4/3/96 AT&T Lucent 09/30/96 No
Technologies
8/21/96 Tridex TransAct 03/31/97 Marginal
Technologies
11/13/96 Santa Fe Energy Monterey 07/25/97 No
Resources Resources
3/6/97 Odetics ATL Products 10/31/97 Marginal
8/12/98 Cincinnati Bell Convergys 12/31/98 No
12/3/98 Creative UBID 06/07/99 Yes
Computers
2/4/99 General Motors Delphi Automotive 05/28/99 No
Systems
8/10/99 Viacom Blockbuster Canceled No
11/17/99 Hewlett-Packard Agilent Technologies 06/02/00 No
11/17/99 HNC Software Retek 09/29/00 Yes
12/1/99 Daisytek PFSWeb 07/06/00 Yes
12/15/99 Metamor Xpedior Canceled Yes
Worldwide
3/1/00 3Com Palm 07/27/00 Yes
4/3/00 Cabot Corp. Cabot 09/29/00 No
Microelectronics
6/26/00 Methode Stratos 4/28/01 Yes
Electronics Lightwave
6/26/00 Deluxe Efunds 12/11/00 No
7/10/00 Eaton Axcelis 12/29/00 No
Technologies
8/9/00 Sea Containers Orient Express Marginal
Hotels
Note.List of 18 equity carve-outs, 1995–2000, in which the parent stated its intention to
distribute to its shareholders its remaining shares in the subsidiary. Issue date is the pricing date
for the IPO, occurring one day prior to the first day of trade. Distribution date is the date on
which the spin-off is completed, occurring some time after the record date for the distribution.