Harris spins off wireless networks unit

Harris Corp. will proceed with its move to spin off its wireless transmission networks unit following the approval of the company’s board of directors.

The distribution of roughly 56 percent of the outstanding shares of Harris Stratex Networks owned by Harris, which totals 32.9 million shares, will occur in the form of a taxable pro rata stock dividend payable on May 27 to Harris shareholders, the company said March 31. Qualifying Harris shareholders will receive approximately .24 of a share of Harris Stratex Networks for every share of Harris common stock they own.

Harris officials said in December that they were evaluating strategic alternatives regarding the unit, which was formed Jan. 26, 2007, through the combination of Harris’ Microwave Communications Division and Stratex Networks Inc.

The spin-off decision was deemed the best course of action by the company’s board of directors, Howard Lance, Harris’ chairman, president and chief executive, said in a statement. “Harris Stratex Networks has a strong management team in place that is capable of taking the company forward,” he added.

Harris ranks No. 13 on Washington Technology’s 2008 Top 100 list of the largest federal prime government contractors.