This excerpt taken from the HBI 8-K filed Sep 5, 2006.
(Par Value $0.01)
Sara Lee Corporation is furnishing this information statement to its stockholders in connection with the spin off of our company. In the spin off, Sara Lee will transfer to us the assets and businesses which Sara Lee attributes to its branded apparel business and distribute on a pro rata basis to its stockholders all of the outstanding shares of our common stock.
For every eight shares of Sara Lee common stock held of record by you as of 5:00 p.m., New York City time, on August 18, 2006, the record date for the distribution, you will receive one share of our common stock. You will receive cash in lieu of any fractional shares of our common stock which you would have received after application of the above ratio. As discussed under The Spin OffTrading of Sara Lee Common Stock Between the Record Date and Distribution Date, if you sell your shares of Sara Lee common stock in the regular way market after the record date and before the spin off, you also will be selling your right to receive shares of our common stock in connection with the spin off. We expect the shares of our common stock to be distributed by Sara Lee to you on or about September 5, 2006. We refer to the date of the distribution as the distribution date.
At the time of the spin off, each share of our common stock will have attached to it one preferred stock purchase right, the principal terms of which are described under Description of Our Capital StockCommon StockPreferred Stock Purchase Rights. Where appropriate, references in this information statement to our common stock include the associated rights.
No vote of Sara Lees stockholders is required, and therefore you are not being asked for a proxy in connection with the spin off. You do not need to pay any consideration, exchange or surrender your existing shares of Sara Lee common stock or take any other action to receive your shares of our common stock.
There is no current trading market for our common stock, although we expect that a limited market, commonly known as a when-issued trading market, will develop on or shortly before the record date for the distribution, and we expect regular way trading of our common stock to begin on the first trading day following the completion of the spin off. Our common stock has been authorized for listing on the New York Stock Exchange under the symbol HBI.