With General Growth Properties (GGP) completing another spinoff,Rouse(RSE) last week, it is worth checking in on how its first spinoff, the Howard Hughes Corporation (HHC), has fared. Here is a recent chart detailing HHC’s stock price since inception (apologies for the charting software – on vacation): It has been quite a wild ride for the company – a relatively… Read More »
One of the more interesting (and attractive) attributes of spinoffs is that they don’t typically get a lot of attention from the media or ‘The Street’. Much rather talk about a birth (IPO) or a marriage (M&A) than a breakup. That has changed a bit over the past year though as several high profile companies announced spinoffs, which… Read More »
It looks like Pfizer (PFE) is moving ahead with its plans to divest its animal health unit. The latest sign is a recent restructuring of its Indian subsidiary’s animal health unit which was folded into the company’s larger animal health division. According to a Pfizer spokeswoman, ‘“in order for any potential transaction with animal health, in some countries… Read More »
Tyco (TYC), a champion spinner with a set of twins of its own in the pipeline, is about to become a grandfather. Covidien (COV), a 2007 spinoff from Tyco, recently announced plansto spin off its pharmaceuticals business into a standalone company. Five is truly a wonderful age to become a parent. Many had predicted some type of transaction… Read More »
Much like Halloween, the end of the year is also shaping up to be an extremely busy period for spinoffs. The latest to join the party is Sears Holding (SHLD) whose board of directors approved the spin offof Orchard Supply Hardware Stores earlier this week. The spinoff will take place on December 30 to shareholders as of today,… Read More »
After successfully completing an IPO this past July, Sunoco (SUN) announced that it is ready to move on to the second stage of its planned spinoff of SunCoke Energy (SXC). On January 17th, 2012 Sunoco will issue a special stock dividend distributing its remaining ~81% stake in SunCoke to shareholders as of January 5th. SUN shareholders will receive… Read More »
New Year’s Eve is one of those ‘big events’ that rarely lives up to its hype and often ends up pretty anti-climactic. Doesn’t bode well for this ensemble flick(actually, I am sure it will suck for a host of other reasons). The board of directors at Williams Companies (WMB) believes they have found the solution for a great… Read More »
Another day, another spin goes by the wayside. The big news yesterday was the AMR Corporation (AMR and parent corporation of American Airlines) filing for Chapter 11 reorganization in what will be the second largest airline bankruptcy since 1980. A lot has been written about this situation already, but it is worth mentioning here because the company’s planned… Read More »
Spinoffs take a lot of time. It really isn’t so surprising considering the plethora of regulatory and logistical issues that arise from splitting up a business. While often overlooked as one time charges, companies spend millions upon millions planning and executing these transactions. As a result, at least 6 months usually pass between the date of announcement and… Read More »
Why not catch up on some news while we await word of the potential ‘spinoff’ of countries from the Euro Zone? Activist investors have recently notched a number of wins by getting companies to agree to break up (McGraw-Hill, L-3 etc.) in order to generate shareholder value. I am sure they also don’t mind the boost in their… Read More »
After a busy Halloween, it is time to look ahead to the next spinoff opportunities. Luckily we won’t have to wait long as Marriott International’s (MAR) board of directors recently approved the spinoff of its vacation club, Marriott Vacations Worldwide. The distribution is expected to take place on November 21st (to shareholders as of Nov 10th) and shareholders… Read More »
Avoid trading on certain days? Superstitious at all? Management at Ntelos Holding (NTLS) certainly are not as the company plans on separating its wireline and wireless businesses this coming Halloween (October 31st). Maybe it was just time to close the transaction after first announcing it last December. For those who are unclear about the differences between the two… Read More »
Late October is shaping up to be a pretty busy period for spinoffs and one of the many expected separations will be IDT Corporation’s (IDT) spinoff of Genie Energy. Please read our earlier post about the spin here, but as a quick refresher, the plan is to spin out IDT’s energy assets from its telecommunications business. Yes, IDT… Read More »
The big news this morning is Kinder Morgan Inc’s (KMI) $20+b cash and stock deal to acquire El Paso Corp (EP) in a bid to become the largest natural gas pipeline operator in the US. The price represents a hefty ~37% premium to El Paso’s recent close. As a refresher, Kinder Morgan was taken private in a mega… Read More »
While speaking at a recent Barclay’s Energy Conference, ConocoPhillips (COP) CEO Jim Mulva provided an update on the company’s broad strategic repositioning plan including some additional details on its upcoming spinoff (see our earlier article on the spin here). The plan is to create a pure-play E&P company (retaining the Conoco name) along with a new downstream company.… Read More »