One reason Teradata spun out publicly rather than being bought
There were well-publicized tax reasons for Teradata to be spun out publicly from NCR rather than just sold off. Back in April, I questioned these, suggesting there was a pretty good workaround.
Today, however, after hearing Teradata management repeatedly finesse the question of why they didn’t pursue the buyout option, a very good reason hit me like a ton of bricks. Teradata employees — especially senior managers — got hefty stock options in connection with the spinout. The same would probably have happened if Teradata were LBOed. But it would surely have not have happened if Teradata had merely been sold off to a third company.
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