The article features several analysts who don’t believe that a spin would add much value or that a spin is even possible. The possible issue aside, it’s no surprise that there are differing views on value.

Either way, when the largest shareholder (and one with a still formidable reputation despite recent woes) starts raising a ruckus, it’s definitely a problem or at the very least a serious distraction for management. As of the most recent filings, aside from Paulson, there really isn’t a large hedge fund presence amongst HIG’s shareholder ranks. Instead, most of the shares are in the hands of institutions like Blackrock and State Street. A lot will depend on their appetite for activism…