Serial spinner IDT(IDT) has set the date for its spinoff of Zedge(ZDGE). IDT shareholders as of May 26 at 5PM will receive one share of Zedge for every three IDT shares that they own. The spinoff will be effective at 11:59PM on June 1. The company’s most recent form 10 can be found here. We recently had the… Read More »
File this under totally expected news: Freeport-McMoran (FCX) has officially withdrawn its registration statement for the planned IPO of its oil & gas business. Although no official reason was provided, I can’t imagine investor appetite for an oil & gas IPO was especially strong in the current environment. In fact, it seems much more likely that we will see… Read More »
After discussing the importance of a spinoff’s tax free nature the other day, of course, there is a big spinoff on the horizon which will be treated as a taxable dividend for shareholders. Due to complications arising from its merger with Tyco (TYC), Johnson Controls’ (JCI) automotive and interior business spinoff will indeed be taxable upon its separation… Read More »
Last October, Yum Brands(YUM) finally agreed to spin off its China business under pressure from investors including Keith Meister of Corvex Management. Corvex owns 5.2% of Yum, and Meister sits on the board. Yum, parent of brands including Pizza Hut, KFC, and Taco Bell, has 7,205 restaurants in China which collectively earn over $1 billion each year. Currently,… Read More »
Earlier today, we reported that former Dean Foods(DF) chair Tom Davis and Las Vegas gambler Billy Walters were being charged with insider trading related to Dean Foods’ 2012 announcement that it would be spinning off WhiteWave(WWAV). We also noted that professional golfer Phil Mickelson was said to have been given the tip. Bloomberg now reports that Mickelson is… Read More »
CNBC reports this morning that former Dean Foods(DF) chair Thomas Davis will be charged with insider trading, along with well-known Las Vegas gambler William “Billy” Walters. Davis had resigned last year as rumors swirled of the investigation into insider trading based on nonpublic information regarding Dean’s Whitewave(WWAV) spinoff. Walters is believed to have passed the tip along to professional… Read More »
Founded by Steven and Mitchell Rales, Danaher Corporation(DHR) is one of the most successful business stories of the last three decades. One of just 44 companies with a cumulative total return of greater than 10,000% over that time period(it’s the 6th best performer), this powerhouse will be spinning off Fortive, its Professional Instrumentation and Industrial Technologies business, on July… Read More »
Those hoping for the IRS to provide clear guidance on spinoff related tax issues can keep holding their breath because it’s not coming anytime soon, at least according to Robert Wellen, associate chief counsel of the U.S. tax agency. According to Mr. Wellen, these types of projects take a lot of time to complete, but on the plus… Read More »
It took years and featured a number of delays, but WestRock (WRK) finally completed the spinoff of its specialty chemicals business, Ingevity (NGVT). The new company began trading on the NYSE today and shareholders should have received one share of NGVT for every six shares of WRK owned. As usual, executives are excited about the future prospects and here… Read More »
It may sound like an alien planet, but Honeywell(HON) shareholders should prepare to see AdvanSix in their portfolios early next year. On the heels of a rebuffed and withdrawn offer for United Technologies(UTX), Honeywell has decided to slim down, announcing that it will spin off its Resin and Chemicals by early-2017. The new company which will be named… Read More »
With all of the world focused on Starwood’s (HOT) buyout and the exciting bidding war between Anbang and Marriott International (MAR) it was easy to forget about the planned spinoff of Vistana, its timeshare business. It always seemed to get lumped into the bids, but as a reminder, the company will merge into the Interval Leisure Group (IILG)… Read More »
Paging Kevin Sorbo! Speaking at an industry conference back in February, Larry Silber, CEO of Hertz’s (HTZ) equipment rental business and of its future spinoff, announced that the new company will change its name to Herc Rentals post-spin. Alas, the choice of ‘Herc’ had nothing to do with the Greek demigod and is merely the initials of the… Read More »
After delaying the spinoff of its chemical business due to ‘complexities’, WestRock (WRK) is finally ready to complete the spinoff of Ingevity. The transaction is expected to be completed on May 15th, with WestRock shareholders receiving 1 share of the Ingevity for every 6 WestRock shares owned. The new company will trade on the NYSE under the ticker… Read More »