Harris to spin off subsidiary

By Lisa Kerner

Charlotte, N.C., March 31 - Harris Corp. announced it will spin off all of the shares of its majority owned subsidiary, Harris Stratex Networks, Inc., to Harris shareholders.

"The board of directors evaluated various alternatives and determined that the spinoff dividend is in the best interest of Harris shareholders," Howard L. Lance, chairman, president and chief executive officer of Harris, said in a company news release.

Harris has a 56% interest in Harris Stratex, which was formed in January 2007 through the combination of the Harris microwave communications division and Stratex Networks, Inc.

According to Harris, it will distribute the 32.9 million outstanding shares of Harris Stratex it owns as a taxable pro rata stock dividend payable on May 27.

The record date for the distribution is the close of business on May 13.

Harris shareholders will receive approximately 0.24 of a share of Harris Stratex for every share of Harris common stock they own on the record date.

The company announced that it was evaluating strategic alternatives for Harris Stratex on Dec. 8.

At that time, Lance said that while Harris Stratex is not a "strong strategic fit" with the rest of the Harris portfolio, the company's current management team is capable of moving Harris Stratex forward.

Harris is a communications and information technology company located in Melbourne, Fla. Harris Stratex provides wireless transmission solutions.

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