Poor Irene Rosenfeld. The former CEO of Kraft Foods was badgered by Nelson Peltz’s Trian Group into breaking up her empire in 2012 into the slow growing, North American grocery business, Kraft Foods Group, and the international snack food company Mondelez International (MDLZ). She remained at the top of Mondelez and also (rightfully) took a lot of heat for the… Read More »
Shortly after writing about Ventas’ (VTR) expanding hospital business (and skilled nursing facility spinoff), Community Health Systems (CYH), one of the largest hospital operators in the country, announced plans to spin off 38 of its hospitals along with its hospital management and consulting arm Quorum Health Resources LLC. The new company will take on the Quorum name, except the… Read More »
Yesterday morning we noted Shire’s (SHPG) unsolicited all-stock offer for recent Baxter (BAX) spinoff Baxalta (BXLT). The proposal offered to exchange any Baxalta shares for 0.1687 Shire ADRs, implying a value of $45.23 per Baxalta share. Of course, Shire promptly slumped over 5% so the effective price went down somewhat. The company responded later in the afternoon with a press release… Read More »
The Summer of Spin kicked off a little over one month ago, but already one of the spinoffs might be acquired. Shire(SHPG) unveiled an offer to acquire last month’s Baxter International (BAX) spinoff, Baxalta(BXLT). According to the release, Shire contacted Baxalta in early July- immediately after the spinoff, met briefly on July 10, but Baxalta has not seriously considered… Read More »
A new REIT is coming shortly to sate investor’s income needs. The board of directors at ‘diversified’ health care REIT operator Ventas (VTR) approved the spinoff of its acute care and skilled nursing facilities into a new REIT named Care Capital Properties. On August 17th, shareholders as of August 10th will receive one share of Care Capital for every 4… Read More »
A few short hits fora hot summer day – Scuttlebutt Investor recently revisited CDK Global (CDK) and offered his thoughts on the company’s recent performance and transformation plan. The company was just spun off from ADP (ADP) last October, but the dealer services company quickly attracted the interest of several different activists. They seem to have become very involved… Read More »
More spins mean more work for the folks at S&P Dow Jones Indices. With the completion of Barnes & Noble’s(BKS) spin of Barnes & Noble Education(BNED) this weekend, Barnes & Noble Education will join its parent in the S&P SmallCap 600, replacing A.M. Castle & Co(CAS). The change will maintain the index’s current ampersand level. With the completion… Read More »
More Summer Of Spin action as Lumentum and Viavi step into the light. A decade after shedding the unwieldy JDS Uniphase(JDSU) name for the alphabet soup JDSU, the former dotcom bubble will say goodbye to this name as well as it splits into Lumentum Holdings and Viavi Solutions this weekend. The stock, which traded at over $1000 in… Read More »
In a nod to ‘Throwback Thursday’, lets take a look at a recent spin that has been in the news recently. Last June, following a broader market trend, Time Warner (TWX) spun off its magazine business into Time Inc (TIME). After a year of independence the new company’s stock is mostly flat, which is not too shabby considering… Read More »
As it continues along its primrose path to irrelevancy, Barnes & Noble(BKS) will complete its long-discussed spinoff of Barnes & Noble Education this weekend. Though the company had formerly combined its NOOK with the College business, it opted, in the end, to retain the NOOK business, and just hired Fred Argir to lead that business. It should be… Read More »
Exterran Holdings (EXH) was all set to go with the spinoff of its global fabrications and international services businesses. The names and tickers were all set – the new company would be called Exterran Corporation with the ticker ‘EXTN’ and the parent would rename itself Archrock and trade under ‘AROC’. It had a date of record (July 22nd),… Read More »
Despite ascending to the top role at Johnson Controls (JCI) less than two years ago, Alex Molinaroli has certainly made his mark on the historic auto supplier. He sold off both its electronics and workplace staffing businesses and also put its interiors business into a JV with China’s Yanfeng Automotive. Not satisfied, Mr. Molinaroli then announced the company… Read More »
United Technologies (UTX) had been considering its strategic options for its Sikorsky helicopter operations for quite some time. At first, it seemed the storied chopper company would end up flying solo via a spinoff due to tax reasons, but, as time went by, a sale seemed to be more and more likely. Eventually, the WSJ (and others) identified… Read More »
Following in the time honored tradition of Yellow Pages locksmiths, Yahoo(YHOO) has opted to name its upcoming spinoff Aabaco Holdings. Perhaps if they stick enough A’s in the name, they can get tax free status for the spin. Though no uplifting corporate message was given for the name, which presumably rhymes with tobacco, it appears to be a… Read More »
Yum! Brands (YUM) has been the subject of breakup talk for some time, with both sell-side analysts (and here) and big hedge funds calling for some type of split. The company has been struggling recently, especially in China, which usually tends to give the activists a bit more clout, but that doesn’t appear to be the case here. During… Read More »