Viacom Gets Clearance for Cable Sale: Viacom...

Viacom Gets Clearance for Cable Sale: Viacom Inc. said the Internal Revenue Service ruled that its plan to spin off and immediately sell its cable television business to Tele-Communications Inc. would be tax-free. The ruling clears the last hurdle for Viacom, which owns television networks and movie studios, to begin the transaction, Viacom said. Viacom plans to spin off its cable systems to shareholders. TCI, the nation’s biggest cable TV operator, has agreed to buy all of the common shares of the new cable company immediately following the spinoff. The transaction, scheduled to begin June 24, would reduce Viacom’s debt by $1.7 billion and reduce the number of Viacom’s common shares outstanding, boosting earnings per share.