Yes 1A, all sounds very plausible. It sounds like a classic spin off with the startup costs charged to the parent, leaving it a financially weakened competitor. A most perfect setup, if your rumour turns out to be correct.
The secret of great fortunes without apparent cause is a crime forgotten, for it was properly done.
-- Balzac
or as paraphrased by Richard O'Connor:
Balzac maintained that behind every great fortune there is a great crime
Dixon, Gregg, Carnegie & Singleton with Alan Joyce as the inside man.