divestiture

di·ves·ti·ture   (dĭ-věs'tĭ-chər, -chŏŏr', dī-)    n.   An act of divesting. The sale, liquidation, or spinoff of a corporate division or subsidiary. [From Medieval Latin dīvestītus, past participle of dīvestīre, to undress, variant of disvestīre : Latin dis-, dis- + Latin vestīre, to dress; see vestment.]

divestiture [(deye-ves-tuh-chuhr, deye-ves-tuh-choor)]

The act of a corporation or conglomerate in getting rid of a subsidiary company or division. In a tactic to pressure South Africa to end apartheid, during the 1980s many Americans and Europeans urged divestiture on corporations doing business in South Africa.

Divestiture

Refers to the sale of a subsidiary company, also called "spin-off."

Investopedia Commentary

An example is when AT&T was forced to divest (breakup) by the U.S. Dept of Justice.

Related Links

The Basics of Mergers and Acquisitions

divestiture

The sale, liquidation, or spinoff of a division or subsidiary. For example, a firm may decide to divest itself of a division in order to concentrate its managerial efforts on more promising segments of its business.

Main Entry: di·ves·ti·ture
Pronunciation: dI-'ves-ti-"chur, d&-, -ch&r
Function: noun
1 : the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)
2 : the sale of an asset (as a business division) that is unprofitable, does not enhance a corporate restructuring, or is felt to be morally reprehensible