Shares at Visteon Corp. cruised to their highest price in three months following a UBS Securities LLC analyst report saying that there would be a "limited" capital-gain tax impact from divesting its holdings in South Korea's Halla Climate Control Corp. Visteon shares soared 4.9 percent to close at $41.83 on August 23, 2012, and it went to as high as $43.41 intraday price. UBS analyst Colin Langan wrote in a report that the capital gain tax impact of divesting Halla is limited. Langan noted in his report that in Korea, the capital gains would likely be exempt from tax under the U.S.-Korea tax law. Visteon, which currently holds a 70-percent stake in Halla, recently failed to acquire the shares it does not own after the National Pension Service, an 8.1 percent shareholder, rejected the bid. Visteon recently changed leadership after chief executive Don Stebbins quit on Aug. 10. Thereafter, Visteon's board named Tim Leuliette as interim chairman, president and CEO. Visteon has been cutting lower-margin revenue in vehicle interiors and lighting to concentrate on rowing Asian operations.
Visteon shares surge as Halla Capital-Gain Tax impact is viewed as “limited”
by Gerald Ferreira, Email, 25 Aug, 2012
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