Liberty Media received a favorable ruling from a Delaware court Wednesday, clearing the last hurdle for the planned spin-off of two tracking stocks this Friday.
Liberty proposed a plan back in June 2010 that would transform its Liberty Interactive unit (including QVC Provide Commerce, Backcountry.com, Buyseasons, Bodybuilding.com, and interests in IAC/InterActiveCorp and Expedia ) by spinning off its Liberty Starz and Liberty Capital tracking stocks. That plan hit a snag when a group of bondholders led by Bank of New York Mellon, sued in Delaware court to block the move. Liberty received a favorable ruling from a lower court in May on the matter, but the bondholders appealed.
According to Liberty, the Delaware Supreme Court affirmed the Delaware Chancery Court's earlier ruling that the spin does not constitute a disposition of assets. As a result, Liberty intends to complete the spin-off at 5 p.m. on Sept. 23.
Effective at or prior to the split-off, Liberty will change its name to "Liberty Interactive Corporation," and the split-off entity (f/k/a Liberty CapStarz, Inc. and Liberty Splitco, Inc.) will change its name to "Liberty Media Corporation." Liberty Media LLC, which is the issuer of the public indebtedness subject to the indenture litigation, will also change its name to "Liberty Interactive LLC."
The shares of Liberty Capital (LCAPA) common stock and Liberty Starz (LSTZA) common stock issued in the Split-Off will trade under temporary trading symbols from Monday, Sept. 26 through Friday, September 30 and will be as follows:
• LCAPA will trade as LCPAD
• LCAPB will trade as LCPBD
• LSTZA will trade as LSTAD
• LSTZB will trade as LSTBD
The LCAPA, LCAPB, LSTZA and LSTZB symbols will go back into effect on Monday, Oct. 3. Shares of Liberty Interactive common stock (LINTA, LINTB) will not be affected by the closing.