Under a separation, which would take place through a tax-free spin-off, Levitt Corp. would become a separate publicly traded company. BankAtlantic Bancorp plans to request a private letter ruling from the Internal Revenue Service that the distribution of Levitt's shares to BankAtlantic Bancorp's shareholders will be tax-free to the latter company and to its stockholders.

Depending on the receipt of such a private letter ruling and any required regulatory approval, BankAtlantic Bancorp would expect the de-merger to take place in the third or fourth quarter. The spin-off would include all of the Levitt 100%-owned subsidiaries, which include Levitt and Sons, Core Communities and Levitt Commercial. The parent company also owns 40% of publicly traded Bluegreen Corp., which is involved in acquiring, developing, marketing and selling vacation resorts, golf communities and residential property.

Levitt and Sons is the nation's oldest homebuilder and first builder of planned suburban communities. Core Communities develops Florida master-planned communities. Levitt Commercial specializes in developing, redeveloping and participating in joint venture opportunities in retail and industrial projects.