Somehow, we never got around to talking about one of the worst names for a spinoff that we can recall. Of course, we are talking about tronc(TRNC). Tribune Media(TRCO) spun it off as Tribune Publishing, but, after Michael Ferro took over, it changed its name to tronc, which sounds like the name of a reptilian villain that… Read More »
AkzoNobel (AKZOY), the Dutch chemicals company, has today announced a review of strategic options for its Speciality Chemicals business. The review comes in response to an unsolicited takeover approach from US rival PPG (PPG) to acquire AZKOY at €83 per share (€54 in cash and 0.3 PPG shares), representing a 29% premium to yesterday’s close. PPG has yet… Read More »
It’s hump day. Here are some links to help you get through it: Marketfolly published some notes on a panel titled ‘The Future of Shareholder Activism’ at the Reuters Live Newsmaker Event. The panel featured some currently ‘active’ managers including ValueAct’s Jeffrey Ubben, Mantle Ridge’s Paul Hilal, Blackrock’s Zach Oleksiuk and Cadwalader’s Richard Brand (lawyer). Mr. Ubben has been… Read More »
Time, Inc.(TIME) CEO Rich Battista has big plans for the transformation of the venerable magazine publisher, but it is doubtful that he will be given the time to execute on them. Battista became CEO late last year, replacing Joe Ripp, who had led the company since its 2014 spinoff from Time Warner(TWX). Rich Battista, the new chief executive… Read More »
Following its spin off from Biogen(BIIB) in January, Bioverativ(BIVV) had merely four Directors- CEO John Cox and three independent Directors. This represented an unusually small Board for a company with a market cap of over $5 billion, and it was probably inevitable that the Board would grow. Last week, Bioverativ added a fifth director, Anna Protopapas. Ms. Protopapas… Read More »
This site is approaching its seventh birthday and over the years a number of sectors have featured prominently on these pages. Energy. Media. A smattering of REITs, restaurants and conglomerates. Retail is one sector though that, excluding Sears (SHLD and ugh) hasn’t seen all that much activity so it was exciting to see a rumor pop up yesterday.… Read More »
JDS Uniphase,(JDSU) Dot Com Boom And Bust Survivor: What Happened to it? Many investors still wonder what happened to JDS Uniphase after the dot-com boom. The once high-flying fiber optics stock was broken up into Viavi and Lumentum, and the story didn’t stop there. Here’s how the pieces fit together today. Judging by search queries and questions that… Read More »
When it comes to spinoffs, once it’s announced, most investors just focus on when it’s done. Maybe there a few people who eagerly await the Form 10 filings or delight at mocking a new company name, but really it’s about the closing. Of course, someone actually has to go about the unheralded business of making sure the new… Read More »
Even before Biogen(BIIB) completed its spinoff of Bioverativ(BIVV), ValueAct Capital began buying “when-issued” stock in the new company. The hedge fund has continued to buy both stock and forward contracts and has now accumulated a 7.1% position in Bioverativ. The shares were purchased at between $40 and $45 per share. As Bioverativ stock has now risen above $50,… Read More »
Yum! Brands (YUM) completed the spin off of its Chinese business, Yum China Holdings (YUMC), last fall. Although it’s only been a few months, ny now most people don’t remember that it took a very, very long time to get that point, including a lengthy will they or won’t they actually spin something off. Nudging the company along… Read More »
In April 2016, Community Health Systems(CYH) spun off Quorum Health Corp(QHC). Quorum borrowed $1.2 billion and paid it as a dividend to Community Health prior to the spinoff, a large sum considering Quorum’s current market cap of $245 million, down precipitously from its debut, but more than double its November lows. Reuters reports that hedge fund Q Investments… Read More »
Nelson Peltz is legendary for successfully pushing for structural change at large companies. This has often resulted in spinoffs of disparate divisions. Last week, Peltz’s investment vehicle, Trian Fund Management, disclosed a $3.5 billion stake in Procter & Gamble(PG). Peltz steps into the shoes of Bill Ackman, who several years ago took an activist position in P&G, only… Read More »
Columbia Business School publishes an investment newsletter featuring ideas from students and interviews with asset managers. The Winter 2017 edition of the aptly titled Graham and Doddsville was just published and it features a conversation with the managers (incidentally both alums) of Kingstown Capital, a value oriented, special situations focused fund. The interview includes the G&D standard ‘how did you… Read More »
New York, New York. It’s a tune Vornado Realty Trust (VNO) shareholders should get used to humming once the company’s upcoming Washington DC property spinoff is completed. The spinoff will actually be executed via Reverse Morris Trust, with the company spinning out its properties into a separate entity and subsequently merging them into the privately held JBG Properties.… Read More »
Reckitt Benckiser (RBGLY) surprised the markets last week with its $16.6b (or $90 per share) bid for Enfamil maker and 2009 Bristol-Myers Squibb split off Mead Johnson Nutrition (MJN). Reckitt is known for owning a hodgepodge of ‘Powerbrands’ such as Lysol, Finish, Durex and Clearasil in the Health, Hygiene and Home sectors so it wasn’t really considered much of a… Read More »