Ceasars Entertainment (CZR) is certainly getting creative in order to deal with its massive debt pile. As this piece notes, the company has already refinanced some debt, pushed back maturities and even attempted to redefine its leverage ratios. Unfortunately, that hasn’t been enough ‘relief’, so the company’s announced a new plan to issue subscription rights to shareholders. The rights would… Read More »
Last Friday, Covidien (COV) announced that its Board Of Directors had given final approval for its long-planned spinoff of Mallinckrodt. Shareholders of record of Covidien as of June 19 will receive one share of Mallinckrodt (MNK) on June 28 for every eight shares of Covidien that they own. The company expects that both Covidien and Mallinckrodt will begin… Read More »
In October, when Dean Foods(DF) sold a stake in WhiteWave(WWAV) in an IPO, the company disclosed that it planned to spin off its remaining stake. Six months later, the company has set Thursday, May 23 as the distribution date for most of that stake. For each share of Dean Foods they own, shareholders will receive 0.25544448 shares of… Read More »
Newcastle Investment Corp (NCT) recently completed the spinoff of New Residential Investment Corp (NRZ) on May 15th. The spinoff, first announced in January, created two separate REITs, with NRZ focused on the residential side and NCT playing in the commercial space. More specifically, NCT invests in two areas: Real Estate & Other Debt and Senior Housing (literally housing… Read More »
IDT appears to be making progress on the spin off of its intangible assets as the company recently announced that Straight Path Communications Inc (SPCI) had filed a Form 10 with the SEC . While a distribution date has yet to be announced, IDT shareholders (both Class A & B) are expected to receive 1 share of SPCI for… Read More »
Barry Sternlicht of Starwood Capital has a long history of real estate success. Nearly two decades ago, he built Starwood Hotels(HOT) from scratch into one of the world’s largest hotel companies. More recently, as Chairman and CEO of Starwood Propert Trust(STWD) he has assembled the country’s largest commercial mortgage REIT. The firm has financed some of the most… Read More »
Canadian Tire Corporation(CTC-A) announced plans yesterday to spin off its real estate as a REIT. The company anticipates selling 10-20% of the new REIT in an IPO this fall, and retaining the rest. The new REIT will have approximately 18 million square feet of real estate valued at approximately C$3.5 billion. The company has no announced plans to… Read More »
Spinoff talk has surrounded Pfizer (PFE) for some time now following a business unit review a couple of years ago. That ultimately led to the sale of its nutritional unit and the successful IPO of ~20% of its animal health business, Zoetis (ZTS) earlier this year. Investors have been hoping for something bigger though, especially following the successful… Read More »
It’s official folks. Valero (VLO) completed the spinoff of CST Brands (CST) and the company began trading today as an independent entity on the NYSE. The new company operates in the US & Canada as an independent retailer of fuel and convenience merchandise while Valero is now a “more-focused refining, wholesale marketing, and alternative fuels company.” The Motley Fool’s Jim Royal is… Read More »
Well that didn’t take long to get back on track. After shareholders overwhelmingly approved Siemens’ (SI) Osram lighting spinoff, the transaction was quickly derailed by a lawsuit. A small group of shareholders claimed the meeting was invalid due to acoustics issues, a charge which Siemens considered ‘without merit’. A Munich judge agreed with the company and tossed the complaint stating the… Read More »
News of Nelson Peltz’s Trian Fund Management ridding itself of all Kraft related positions turned out to be off…very off. In an amended Q4 13F filing released last week, the hedge fund revealed a large stake of over 19 million shares (a bit more than $600m worth) in Kraft’s international snacks spinoff Mondelez International (MDLZ). There was still… Read More »
When discussing spinoffs, analysts often toss in a comment about how the new slimmed and focused companies will be more attractive acquisition targets. After all, who doesn’t like the idea of a relatively quick exit with a nice premium? Sometimes they are right though and the most recent one to be acquired is Sara Lee spin DE Master… Read More »
In 2007, it was all smiles as Peabody Energy(BTU) spun off Patriot Coal(PCXCQ). But loaded with debt and retiree health and pension obligations, Patriot filed for bankruptcy in July 2012. Now, Patriot and its creditors, led by the United Mine Workers of America, are investigating whether the spinoff was a fraudulent transfer which might give Peabody back the… Read More »
In 2006, Sara Lee, now Hilshire Farm(HSH), loaded up HanesBrands(HBI) with lots of debt and spun it off. Seven years later, after weathering a financial crisis, steadily paying down debt and improving profitability, the company has announced it will pay a quarterly dividend of $.20, beginning in June. The dividend will be paid on June 3, to shareholders… Read More »
We love all our posts equally, really we do. It’s just that some posts are more equal than others. We take a guilty pleasure in writing up nanocap stocks that have decided to pursue a spinoff. While we have seen many nanocaps with value(and we own significant stakes in several), we have yet to see a spinoff in… Read More »