U.S. government IT contractor SAIC Inc said its board approved the spin-off of its services business, as the company looks to aggressively bid for more government contracts.SAIC decided to split the company into two in August 2012, as it was unable to pursue certain government contracts as a single company due to conflict-of-interest regulations."The spin allows us to eliminate any perception of organizational conflicts of interest, enabling us to pursue a new world of market opportunities with an integrated enterprise approach," Group President Tony Moraco, who will head the new entity, said in a statement.U.S. regulations prohibit a company from being a program manager on behalf of the government to hire contractors for a project, and also bid for the same contract.
SAIC, Inc. (SAIC) is a holding company. SAIC operates in four segments: Defense Solutions; Health, Energy and Civil Solutions; Intelligence and Cybersecurity Solutions, and Corporate and Other. Shares of SAI traded higher by 0.49% or $0.07/share to $14.44. In the past year, the shares have traded as low as $10.69 and as high as $16.06. On average, 2787300 shares of SAI exchange hands on a given day and today's volume is recorded at 2256668.
Source
