Harris To Spin Off Harris Stratex Networks

MELBOURNE, Fla. (AP) — Harris Corp., which makes radios and communications devices for military and commercial customers, said Tuesday that it received board approval to spin off Harris Stratex Networks Inc.

In December, Harris said it was looking at options for the majority-owned subsidiary, which included a possible spin-off, split-off, secondary public offering or the sale of all or part of its shares. At the time, Harris said that the unit was not a strong strategic fit with the rest of its businesses.

Harris will distribute its approximately 56 percent stake in Harris Stratex through a taxable pro rate dividend that will be paid on May 27 to shareholders of record May 13. The dividend will not alter the amount of outstanding shares for Harris or Harris Stratex.

Harris stockholders will receive about .24 share of Harris Stratex for each share of Harris they own.

Harris Stratex Networks, which provides services for mobility and broadband networks, is a combination of Harris' microwave communications unit and Stratex Networks Inc. When the company was created in January 2007, Harris agreed to some limitations on changes in its ownership in the subsidiary before Jan. 26, 2009.

Harris shares rose 69 cents, or 2.5 percent, to $28.54 in morning trading.