Spinoffs have been relatively popular recently and you know how ‘fads’ go. Once a trend begins, people (in this case companies) try to one up another by going bigger. Better. Bolder. One spinoff isn’t enough anymore so Fortune Brands (FO), ITT (ITT) and even Carrefour (CRERY) went for two. Please give a hearty welcome to the newest member… Read More »
A brief summary of spinoff news with a dash of the rumor mill mixed in – enjoy the first Spinoff Roundup. Readers – what is the interest level (if any) in non-US traded spinoffs? Newscorp (NWS) announced plans to spin off Sky News in order to gain government approval for its takeover of British Sky Broadcasting. The spin… Read More »
Maybe it’s not so good to be the king. While announcing its Q4 and FY 2010 earnings, Carrols Restaurant Group (TAST) announced plans to separate its Hispanic brands from its Burger King franchises (Q&A transcript here). The new company will operate the Pollo Tropical and Taco Cabana restaurants while Carrols will continue to run Burger King franchises, where,… Read More »
In an attempt to mimic the company’s lifesaving products, Medtronic (MDT) announced that plans to divest its Physio-Control subsidiary have been revived. While overshadowed by broader restructuring plans, the Physio announcement was made during the company’s Q3 earnings release and elaborated on (a bit) during the conference call by the company’s CFO, Gary Ellis (Q&A portion here). Unfortunately,… Read More »
The final chapter of the Pride International (PDE)/Seahawk Drilling (HAWK) spinoff is nearly complete. Our earlier post noted that both companies were struggling and considering their respective strategic options. Two companies with the same goal, yet oh so different outcomes. Here is a quick update: Pride, an offshore rig contractor with a deep-water focus and international exposure, agreed… Read More »
Anyone else have this experience? A friend suggests a fantastic trip and the best part of all is that he ‘found’ a cheap stay at a nice hotel. The catch? Wasting half of a precious vacation day sitting through a hard sell for a timeshare. Ouch. While it’s fun to see how many freebies the company will throw… Read More »
What an exciting month January was for Sara Lee (SLE). To recap: Brazilian meat processor JBS SA’s bid of $17.50/share is rejected by the board as too low. Rumors of a spinoff begin to surface, but private equity buyers begin to circle and JBS SA plans on increasing their offer. A short while later, the board rejects the… Read More »
Image via Wikipedia Not surprisingly, an ‘overwhelming majority’ of ArcelorMittal (MT) shareholders approved the spinoff of its stainless and specialty steel businesses today. The new company, Aperam, will be a global leader in stainless steel production, an industry which has been plagued with overcapacity and hurt by the global slowdown. The spin is more conducive to industry consolidation… Read More »
Image via Wikipedia Another day, another spinoff. Marathon Oil (MRO) announced today that its Board of Directors has approved spinning off its downstream operations. The new company will be called the Marathon Petroleum Corporation (MPC – also its expected ticker) and will be one of the largest refiners in the United States with assets concentrated mainly in the… Read More »
Image via Wikipedia After rejecting JBS SA‘s offer of $17.50/share, Sara Lee (SLE) was rumored to be favoring a breakup strategy which would likely involve the spinoff of either its coffee or meats division. It is believed that a spinoff would unlock the value of the unrelated businesses and facilitate the sale of each individual unit. While JBS,… Read More »
Image via Wikipedia Experienced traders and seasoned investors often mention discipline as one of the keys to success in this industry. While some speculation is encouraged, drawing the distinction between ‘the good’ and ‘the bad’ kind can be difficult. A common misconception is that this only applies to ‘investors’ however, corporations face similar dilemmas when deploying their capital.… Read More »
It looks like the SunCoke spinoff from Sunoco (SUN) might not be completed by the initial target date set by the company of 1H 2011. Ongoing litigation with one of their biggest customers, ArcelorMittal (MT – also a company on our spinoff radar), is the reason for the potential delay. Apparently, ArcelorMittal is claiming that SunCoke subsidiary Jewell… Read More »
Image by Getty Images via @daylife ArcelorMittal’s (MT) board confirmed its plan to spin-off the company’s stainless steel division in the hope of ‘maximizing shareholder value’ and capturing the division’s growth potential. The new company, which will be called APERAM, will be listed on several international exchanges (including Euronext Paris and Amsterdam), but will only trade OTC in… Read More »
Cover via Amazon A corporate conglomerate is truly a wonderful thing. Growth through acquisitions often leaves these companies quite bloated and operating in unexpected areas though. Sometimes this is done on purpose in order to diversify exposure by investing in unrelated areas. These ancillary businesses surrounding the ‘core’ can be quite surprising and make you go ‘Really?’ –… Read More »
Image via Wikipedia Despite the optimism of spinoff investors, not every spin is a success story…at least when measured by stock price appreciation. In late August of 2009, offshore rig contractor Pride International (PDE) spun off its shallow water operations into the newly formed Seahawk Drilling (HAWK). The great ticker could not overcome the poor industry fundamentals and… Read More »