CBS Corporation CBS
today announced a pair of strategic initiatives regarding its CBS Outdoor
operating segment, which is comprised of two businesses -- one in the Americas
and the other in Europe and Asia.
For the Outdoor Americas division, the Company has begun the process of
converting the business into a real estate investment trust (REIT). For its
Outdoor operations in Europe and Asia, the Company will pursue a divestiture
of the business, which will be presented as a discontinued operation as of
December 31, 2012.
"We believe the moves we are announcing today will unlock the tremendous value
of these unique quality assets," said Leslie Moonves, President and Chief
Executive Officer, CBS Corporation. "We have studied the benefits of
converting our Americas operations into a REIT, and we are increasingly
enthusiastic that this transaction -- as well as the sale of our business in
Europe and Asia -- will achieve significant value for our shareholders."
As part of CBS's plan to convert its Outdoor Americas division into a REIT,
the Company will submit a request for a private letter ruling from the
Internal Revenue Service during the first quarter of 2013. If the ruling is
granted, the Company could complete the REIT conversion in the taxable year
beginning in 2014. All of these actions are subject to customary approvals.
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