Leveraged Stock transfer to new plan

[Guest andmik]

Has anyone had any experience with the following type of situation:

Company A is spun off from Company B. Company B operates a 401(k) and leveraged ESOP in which Company A participates. Under consideration is whether Company A can or should move the Leveraged Stock its employees hold in Company B plan when the assets are spun off to a new unrelated plan for Company A's employees.

Company A is inclined not to retain the Employer Securities of Company B in its new plan but rather sell the stock of participants and maintain the new plan strictly with mutual fund offerings.

Any experience and feedback with this type of scenario would be appreciated.

Andmik