Last November, Citrix Systems(CTXS) announced plans to spin off its GoTo business. This week, it announced that the spinoff would culminate in a merger with LogMeIn(LOGM) in a Reverse Morris Trust transaction. The transaction, which is expected to be tax-free, will leave Citrix shareholders owning 50.1% of the new company. LogMeIn’s management team, led by CEO Bill Wagner,… Read More »
ConAgra’s (CAG) planned spinoff of its potato product business, Lamb Weston, is making progress. The most recent milestones achieved were the filing of the company’s initial Form 10 and the naming of its top executives. Thomas Werner, currently President of ConAgra’s Commercial Foods business, will become CEO and Tim McLevish, currently a consultant, will become Executive Chairman. Sean… Read More »
After years of deliberations and studies, Hawaii’s Public Utilities Commission (the ‘HPUC’) recently ruled against NextEra’s (NEE) proposed takeover of local utility Hawaiian Electric (HE). The commission concluded that NextEra ‘failed to prove its plans for HECO would be good for the state’ and it wasn’t convinced it would ultimately benefit Hawaii’s consumers. A big sticking point appeared… Read More »
Mining giant Rio Tinto (RIO) announced a major structural reorganization several few weeks ago. As part of the restructuring, a group of ‘non core’ assets were lumped together inside of the newly formed Energy and Minerals group leading to speculation from analysts and reporters (and us) of a spinoff. After all, fellow mining peer BHP Billiton (BHP) did… Read More »
July 4th week is a good time to catch up on some recent spinoff transactions. Last week Hertz (HTZ) completed the separation of its equipment rental business Herc Holdings (HRI). This one was a bit tricky mechanically and here is how the transaction went down: To effect the separation as part of a tax-free spinoff, Hertz Global Holdings stockholders as of… Read More »
When Starz (STRZA) was first spun out of Liberty Media (LMCA) back in 2013, it seemed like only a matter of time before the company was acquired. Many rationalized the spinoff as purely an attempt to get the company sold and buyout rumors always seemed to swirl around the company (and keep its price up). It didn’t happen… Read More »