California Resources Corporation (CRC) skipped an interest payment last month and seems headed towards a Chapter 11 filing. In the meantime, the company made one interest payment late and then successfully bought a few more weeks of additional time by negotiating a forbearance agreement with its lenders. June 30th is now its next big deadline, but it seems… Read More »
It’s been quite the ride for Marathon Petroleum’s (MPC) planned spinoff of its convenience store business, Speedway. The idea was studied as part of a strategic review in 2017, but ultimately the board determined it wasn’t in the company’s best interests at the time. That decision was surprising given Elliott Management‘s involvement and initial support for the idea.… Read More »
New York sports fans will once again have to wait a little bit longer to own a clean slice of the city’s most iconic teams. During its recent Q4 conference call, The Madison Square Garden Company (MSG) noted that the planned spinoff of its sports teams was ‘taking longer than expected’ and that as a result, the planned… Read More »
Perhaps readers thought that the DowDupont spinoff was beaten to death and were glad to see the final spinoff date pass. Sorry to disappoint, but there’s still more to say on the subject (and likely will be for some time!). In this week’s Odds and Ends we catch up on some of the recent action: 1. DuPont Gets… Read More »
Shortly after disclosing a poor start to 2019, CenturyLink (CTL) announced that it was beginning a strategic review of its consumer business. The unit represents less than 25% of its overall sales, but it is one of the largest local exchange carriers in the US. It offers broadband and other services to consumers in various markets throughout the… Read More »
Another month is almost in the books so lets recap the recent spinoff activity and also take a look at what spinoffs the next month will bring: Spinoffs Completed Prior Month Not a ton of activity this past month on the spinoff front: May 22nd – VF Corp (VFC) completed the spin off of its jeans business as… Read More »
The upcoming spinoff of Corteva Agrisciences on June 1st is the final step of DowDupont’s (DWDP) breakup. You may have heard us talk about it once or twice or…it’s not important. As a reminder though, Corteva will trade under the ticker ‘CTVA’ and DWDP shareholders should receive 1 share of CTVA stock for every 3 DWDP shares owned.… Read More »
Let’s kick off the week with another edition of the always eclectic Spinoff Odds and Ends: 1) Thyssenkrupp Update We provided an update on thyssenkrupp’s (TKAMY) new ‘strategic direction’ last week. The JV with Tata Steel is out and the elevator business spinoff was scrapped for an IPO instead. Just a few days later though, the story seems… Read More »
The beginning of the New Year is often a time of hope. A fresh start. A clean slate. A new beginning. Unfortunately, it doesn’t always go as planned and the first quarter of 2019 was particularly rough on commodity giant Archer Daniels Midland (ADM). Profit plunged over 40% due to a confluence of events including the ongoing trade… Read More »
We discussed one scrapped spinoff earlier this week – Brunswick’s Life Fitness – but, alas, it wasn’t an isolated incident. In this edition of Odds & Ends we catch you up on the latest in abandoned spin plans: 1. Thyssenkrupp’s Elevator Spinoff thyssenkrupp (TKAMY) shocked the markets with a stunning strategic about face ‘reset’ last week. Seven months… Read More »
Brunswick (BC) announced earlier this week that private equity firm KPS Capital Partners will acquire its fitness business for $490m in cash, ending the unit’s planned spinoff. Brunswick paid over $300m for the business back in 1997, but sales have been declining over the past few years. Brunswick CEO David Foulkes noted that ‘with the sale of the… Read More »
Lets kick off the week with a new edition of odds and ends catching up on some old items: Disney (DIS) acquired 21st Century Fox last month, but a new, slimmed down Fox Corporation (FOX) was spun off just prior to the deal closing. The new Fox is still controlled by the Murdoch family, but it is a… Read More »
Until this week, VF Corporation’s (VFC) upcoming Kontoor Brand’s spinoff only had the vague timetable of ‘sometime in May’. Finally, we have some closure and some concrete details on the jeanswear company’s upcoming independence. The board of directors has now formally approved the spinoff which will take place after the close on May 22nd with shareholders expected to… Read More »
Mohnish Pabrai may be best known to the world for his hedge fund or for his books such as The Dhando Investor, but on this site it’s for his relatively new Spinoff Portfolio. Unfortunately, despite strong backtested results, 2018 was a rough year for the portfolio. Four of out five names finished in negative territory for the year,… Read More »
Earlier this month DowDuPont (DWDP) began its ‘slim down’ phase with the spinoff of the new Dow Corporation (DOW). The new company received lots of love from the index community. It replaced DowDuPont in the Dow Jones Industrial Average and is also a member of the S&P 500 index. Now it is seemingly also the darling of the… Read More »