A Medical Device Daily

CareFusion (San Diego), the company that will become public from the planned spinoff of Cardinal Health's (Dublin, Ohio) clinical and medical products businesses, reported filing a fourth amendment to its Form 10 Registration Statement with the Securities and Exchange Commission, where it announced the receipt of the private letter ruling from the Internal Revenue Service (IRS) and an adjusted distribution ratio for the planned spinoff.

Cardinal has received a private letter ruling from the IRS that the planned contribution by Cardinal of the assets of the clinical and medical products businesses to CareFusion and the planned distribution of CareFusion common stock to Cardinal Health shareholders will qualify as a transaction that is generally tax-free for U.S. federal income tax purposes.

As part of the filing, the company also disclosed a new distribution ratio for the planned spinoff of 0.5 share of CareFusion common stock for each common share of Cardinal held at the record date. Based on nearly 360 million Cardinal Health common shares outstanding as of March 31, a total of almost 180 million shares of CareFusion common stock will be distributed to Cardinal Health shareholders.

As previously disclosed, Cardinal Health will retain up to 19.9% of CareFusion's outstanding common stock, which equals nearly 45 million additional shares. Cardinal will divest all CareFusion shares within five years of completing the spinoff.