Another day, another spin goes by the wayside. The big news yesterday was the AMR Corporation (AMR and parent corporation of American Airlines) filing for Chapter 11 reorganization in what will be the second largest airline bankruptcy since 1980. A lot has been written about this situation already, but it is worth mentioning here because the company’s planned… Read More »
Marriott Vacations Worldwide(VAC) which we discussed previously, has now completed its spinoff. Timeshares are a challenging industry; they sell a product that many buyers seem unhappy with. Goldman Sachs started the company with a Neutral rating, and in the current economic environment is likely to be challenging for the new company. The former parent, Marriott International(MAR), has… Read More »
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 date of announcement and… Read More »
Why not catch up on some news while we await word of the potential ‘spinoff’ of countries from the Euro Zone? Activist investors have recently notched a number of wins by getting companies to agree to break up (McGraw-Hill, L-3 etc.) in order to generate shareholder value. I am sure they also don’t mind the boost in their… Read More »
After a busy Halloween, it is time to look ahead to the next spinoff opportunities. Luckily we won’t have to wait long as Marriott International’s (MAR) board of directors recently approved the spinoff of its vacation club, Marriott Vacations Worldwide. The distribution is expected to take place on November 21st (to shareholders as of Nov 10th) and shareholders… Read More »