Teradata Spin-Off Hits Potential Snag

DAYTON, Ohio – NCR Corp.’s planned spin-off of its Teradata data warehouse unit has hit a possible roadblock as the company reported yesterday the Justice Department is investigating Teradata business practices involving government contracts. An internal investigation has uncovered evidence of ‘questionable conduct’ that NCR has already shared with U.S. investigators, the company said in a filing yesterday with the Securities and Exchange Commission. NCR said it has recorded a reserve of about $1 million to cover potential liability. NCR is preparing to spin off Teradata into a separate company, with the surviving company being the company’s core ATM and payment terminals business.

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