It’s almost here. SPX Corporation (SPW) is set to complete the spinoff of SPX FLOW (FLOW-wi) this weekend and the new company will start trading under the ticker ‘FLOW’ on Monday. Shareholders will receive 1 share of FLOW for every SPW share owned and after the spin off, the parent company will change its ticker to ‘SPXC’. Sounds… Read More »
Fidelity National Financial (FNF) went on a buying spree during the crisis and snapped up an eclectic bunch of assets. The company set up a tracking stock, quite a rare breed, FNFV, in order to track the value of this eclectic group of businesses. After some prodding from Corvex Capital, the company is now in the process of monetizing… Read More »
Betting on distressed residential real estate became extraordinarily popular post-crisis and the space even attracted some big money names including Blackstone (BX) and Colony Capital (CLNY). Barry Sternlicht’s Starwood Property Trust (STWD) was another entrant and in early 2014 the company spun off its single family residential real estate assets into the Starwood Waypoint Residential Trust (SWAY). The macro trends… Read More »
After ceasing buyout discussions with Ariad Pharmaceuticals (ARIA) due to disagreements over price, Baxalta (BXLT) is apparently still in play. The WSJ recently reported that Shire (SHPG) is still trying to consummate a deal with the drug company after having its hostile, all-stock offer rejected earlier this summer. As a quick refresher, Shire surprisingly unveiled an offer of 0.1687 ADRs… Read More »
SPX Corporation (SPW) is currently in the process of spinning off its flow products into the cleverly titled SPX FLOW. The board has approved the transaction and on September 26th, shareholders as of September 16th with receive one share of the new company for every SPW share owned. SPX FLOW is expected to generate ~$2.5b of revenue and… Read More »
A few links to settle back in after the long Labor Day weekend: Spinoffs are all the rage and conglomerates are dropping like flies. While GE (GE) and others are currently slimming down, the WSJ notes that Honeywell (HON) is the rare outperforming conglomerate that is actually being cheered for its diversified position. Whether that remains the case… Read More »
How quickly things change. Last week, word was Baxter (BAX) spinoff Baxalta (BXLT) was in talks to acquire oncology focused Ariad Pharmaceuticals (ARIA). The rumored $2b price tag sent Ariad shares soaring, but alas, today shares are crashing on word the deal has been called off. According to Bloomberg, there were a couple of pretty big issues that emerged:… Read More »
One the most anticipated spinoffs during the Summer of Spin was eBay’s (EBAY) spinoff of PayPal (PYPL). Both activists (Carl Icahn) and tech kings (Elon Musk) urged the company to make the move, but it didn’t help the initial performance as the stock took a slight dive in its first few days of trading. A few days of… Read More »
With Darden (DRI) announcing a real estate spinoff, analysts and investors are flocking to find other targets which could benefit from monetizing real estate assets through a REIT conversion. One reason REITs are attractive is that they tend to trade at higher multiples than other sectors so in theory, a separation ‘unlocks’ value by creating a higher sum… Read More »
Starboard Fund, the ‘Tom Brady of activists‘, successfully campaigned for a spinoff of MeadWestvaco’s specialty chemical group earlier this year. The spin got delayed a bit as the company merged with RockTenn in order to create a consumer and corrugated packaging giant named WestRock (WRK). Now that the merger has closed, the spinoff is heating up again and… Read More »
A few links for another glorious summer Friday: The activist investors at CDK Global (CDK) have a new plan to keep the star spinoff stock rising: find a buyer. The company is apparently working with Morgan Stanley to sell itself and private equity firms are apparently the target audience. That is somewhat surprising because a PE deal for… Read More »
The endless speculation regarding YUM! Brands (YUM) China spinoff rages on despite management saying it’s not currently in the cards. The most recent fuel added to the fire was a sudden management shakeup in China. Long time company veteran and Chinese expansion mastermind Sam Su is retiring from his position as Yum China’s CEO after 26 years of… Read More »
Forbes continues to pump out the spinoff ideas. The other week, we highlighted a Forbes piece nominating five companies ripe for a spinoff, including big names such as Disney (DIS) and Time Warner (TWX). That wasn’t all though. A recent idea in Forbes by Richard Stiennon was that chip powerhouse Intel (INTC) should spin off McAfee, its internet security… Read More »
Ventas (VTR) completed the spinoff of its skilled nursing facilities into the brand new Care Capital Properties (CCP) yesterday. Shareholders should have received 1 share of CCP for every 4 VTR shares owned. The new company is set to join the S&P 400 Midcap index and will be replacing Omnicare which is in the process of being acquired by… Read More »
Emergent BioSolutions (EBS) announced that it will spin off its Biosciences business into a standalone entity. So what do they mean by ‘biosciences’? The new company will ‘focus on providing novel oncology and hematology therapeutics to meaningfully improve patients’ lives. The core technology of the Biosciences company will be its ADAPTIR platform applied to immuno-oncology’. More specifically, the new… Read More »