Spinoffs take a lot of time. It really isn’t so surprising considering the plethora of regulatory and logistical issues that arise from splitting up a business. While often overlooked as one time charges, companies spend millions upon millions planning and executing these transactions. As a result, at least 6 months usually pass between the...
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The big news this morning is Kinder Morgan Inc’s (KMI) $20+b cash and stock deal to acquire El Paso Corp (EP) in a bid to become the largest natural gas pipeline operator in the US. The price represents a hefty ~37% premium to El Paso’s recent close. As a refresher, Kinder Morgan was taken...
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Activist investors appear to be back and are once again using their clout to influence corporate decision making. Occasionally, this can lead to a spinoff such as the case with Bill Ackman’s Pershing Square and Fortune Brands (FO) or Carl Icahn and Motorola. Of course, not every company is looking for outside ‘advice’. Consider...
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The energy and E&P business has been no stranger to spinoffs and over the past few years numerous companies have pursued this strategy to unlock shareholder value. So it was no big surprise when in February Williams Companies (WMB) announced plans to split itself into two. To be fair, another reason the announcement wasn’t...
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