ConocoPhillips(COP). Phillips 66 will receive refining, marketing, midstream and chemicals businesses from the integrated oil company. ConocoPhillips shareholders will receive 1 share of the new Phillips66 for every 2 shares they own.
At the same time, the new Phillips 66 will join its parent, ConocoPhillips, in the S&P 500, replacing supermarket chain SUPERVALU(SVU). In a cascading series of changes, SUPERVALU will move into the S&P MidCap 400, replacing American Greetings(AM), which will move into the S&P SmallCap 600, replacing The Standard Register(SR).
Both ConocoPhillips and Phillips 66 are already trading on a “when issued” basis. ConocoPhillips(COP-wi) closed yesterday at $53.79 and Phillips 66(PSX-wi) at $34.75, while the “regular way” ConocoPhillips closed at $71.02, meaning the when-issued shares are at a slight, $.14 premium. We expect that both companies will continue to perform well and benefit from the robust petroleum market and improving economy.
Disclosure: The author holds no position in any company mentioned
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Hi guys,
I just want to say what a great blog this is and a fantastic way of staying on top of all these various spin-offs and their developments.This blog is a very good starting place to do research and to get tipped off that a spin-off is in the pipeline and I appreciate that you track its progress all the way to the final separation.
I have a portfolio set aside specifically to invest in spin-offs and it has done well with Xyl & Beam in the US and North sea oil consolidator Enquest in the UK. Spin-off investing is probably one of the easier, yet a still very effective style of investing. So just to say keep up the good work and thank you very much for doing this. Best regardsJustin Pugsleyin the UK