Comverse Technology is ready to sell its billing software unit to shareholders.
It was widely reported late in 2011 that the company was wooing some major tech companies as potential buyers for the unit, but Comverse – a provider of value-added services to telecommunication service providers – said this week that it will distribute all shares of Comverse Inc. before its fiscal year is over, according to MarketWatch. Its holding company reportedly will be eliminated to help Comverse become more efficient in its corporate offices.
Calling it cost-effective and tax-efficient, CEO Charles Burdick said the distribution plan still needs approval from Comverse's board of directors.
Comverse made a profit in its most-recent quarter thanks to higher revenue for its products and lower restructuring charges, MarketWatch said. While the company's stock is down 15 percent over the past half-year, it's up almost 3 percent since mid-week when investors first caught wind of the spinoff decision.
