A team of Goldman analysts led by Richard Ramsden raised quite the storm earlier this week by releasing a 20 page research note suggesting that JP Morgan (JPM), one of the world’s largest banks, should break itself up. Apparently the bank is a victim of its own success (isn’t that just the best kind of victomhood?) and has… Read More »
In the middle of 2014, Relational Investors was busy notching another activist victory, this time at Timken (TKR), while also building up the case on its newest target, The Manitowoc Company (MTW). In short, the firm argued that a foodservice business selling machinery to restaurants didn’t have any reason to be paired with a crane equipment business. As… Read More »
Two years after successfully fending off legendary activist Carl Icahn and his plan to break up the company, some think that Oshkosh Corp(OSK) management may be planning a spinoff of its own. Maureen Farrell of the Wall Street Journal reports on a recent note by CreditSights analyst Jeff Wichmann. Wichmann suggested that Oshkosh may be considering a spinoff… Read More »
https://www.youtube.com/watch?v=UsvUVDTgPoI The dramatic explosion of Orbital Sciences'(ORB) Antares rocket on October 28 delayed a planned merger with Alliant Techsystems(ATK), but it will not derail it. Last April, Alliant announced it would spin off its sporting goods business and subsequently merge its defense business with Orbital. The sporting goods business will be known as Vista Outdoor,Inc. As might be… Read More »
After 31 rounds, the FCC’s AWS-3 auction has reached $36 Billion in bids. This has pushed up the value of Dish Network’s(DISH) shares, as the company already owns spectrum that, in the eyes of some analysts, is more valuable than what is currently being auctioned. In addition, TMF Associates identifies Dish as a major bidder in the current… Read More »
Late last month, Procter & Gamble(PG) announced that it would be divesting its Duracell business. At the time, its preferred outcome was to spin off the division to shareholders. The second step is the exit of the Duracell business. Although no decision has been made on the form of the exit, P&G’s current preference is a split-off of… Read More »
A subclass of spinoff that has proven popular, especially under activist pressure has been the spinoff of real estate assets into a publicly traded REIT. Civeo’s (CVEO) spin from Oil States (OIS) was one example, though the company has now opted against REIT status, as was Penn National Gaming’s (PENN) spin of Gaming & Leisure Properties (GLPI). Now,… Read More »
We wrote last week about Madison Square Garden Company’s(MSG) plan to explore a spinoff of its sports and entertainment business. The company is in the early stages of planning this transaction and there still remain many unanswered questions. Capital New York reports that CEO Tad Smith confirmed on last Friday’s earnings conference call that the company has not… Read More »
Crimson Wine Group (CWGL) dropped a 134 word bomb today with the news that as of November 3rd, CEO Erle Martin was ‘no longer an employee’ of the company. The company slipped the news in a brief 8K filed with the SEC and offered no additional details on the move, and issued no press release. The board is… Read More »
Kimberly-Clark (KMB) officially completed the spinoff of its health care business, Halyard Health (HYH). The new company began trading ‘regular way’ on the NYSE today under the ticker ‘HYH’ and Kimberly-Clark shareholders as of the date of record should have received 1 HYH share for every 8 KMB shares owned. While the parent company’s press release was pretty muted,… Read More »
Less than a month after being spun off from Automatic Data Processing (ADP), CDK Global (CDK) has already attracted the interest of an activist investor. Sachem Head Capital Management, a firm led by Bill Ackman protege Scott Ferguson, has amassed a 9.8% stake in the company and is ‘seeking talks’ with management. This must be some type of record.… Read More »
Sorry, Mr. Loeb, it looks like it’s only going to be $219 per share for Amgen (AMGN). The biotech leader hosted a business update session yesterday and CEO Robert Bradway wasted no time in addressing the proverbial 800lb gorilla in the room. Within his opening remarks, Mr. Bradway noted that although they understood the pressure to break up, the company… Read More »
The end of the month is jam packed with spinoffs which means that the major indices will be making some changes as well. In this case, two S&P 500 companies, Agilent (A) and Kimberly-Clark (KMB), are spinning off units which will join the S&P Midcap 400: Keysight Technologies Inc. (NYSE:KEYSwi) will replace Universal Corp. (NYSE:UVV) in the S&P… Read More »
Despite being independent for a mere five months, Civeo (CVEO) has sure generated a lot of excitement. Many anticipated that the company, a spinoff from Oil States International (OIS), was destined to become a REIT in order to better distribute its income. REIT status would also theoretically offer the company a more premium market multiple, boosting its price.… Read More »
The Dolan family is at it again. Perhaps inspired by the master of the spinoff, fellow cable mogul John Malone, 2010 Cablevision(CVC) spinoff The Madison Square Garden Company(MSG) has announced that it is exploring spinning off its Media and Sports business from its Live Entertainment business. The company’s Board Of Directors unanimously approved the plan to explore the… Read More »