What constitutes a separate division under the same desk rule?

[Guest JWBrown]

My question involves a 401(k) plan and application of the same desk rule.

One of the exceptions involves the sale of substantially all of the company or a separate division, unit, etc. of the company. What if the part of the company being sold is not all an identifiable unique part of the company? For example, 70% of the sale involves one division, but 5% is from a second division, 10% from a third division, 15% from a fourth division.

Would it be more defensible to say that the divisions en masse don't really meet the requirement to be a separate division, since there is more than one part of the company involved, so there is not an exception to the same desk rule?

Or would it be more plausible to parse the single sales transaction and look at each of the divisions separately, so that each of them is less than 85% of a separate division, therefore the sale actually constitutes a separation from service for the affected employees (i.e. falling under last year's IRS ruling)?

Help.