After several years of delays, Gavin Thomas, CEO of Australian miner Kingsgate Consolidated, tells Dealbook Australia that the company’s Thai unit, Akara Mining, may IPO in Thailand next June. Presumably, no shares of the newly separated unit would be distributed to shareholders, but this would allow the company to raise money to fund the development of its Thai… Read More »
Shareholders of Sears Holdings(SHLD) have been once again reminded that entropy is inexorably increasing, at least in their brokerage accounts. Less than a year ago they had only Sears, but since then, they have received in three separate transactions, Orchard Supply Hardware common (OSH) and preferred (OSHSP), warrants to buy Sears Hometown and Outlets (SHOS), and now, Sears… Read More »
Investing in spinoffs is certainly becoming more ‘mainstream’. As proof, Forbes’ most recent issue had a long writeup on the space titled ‘Why Spinoff Stocks Are Sizzling (And Should Stay Hot)‘. The piece is worth checking out and discusses the usual spinoff investment stuff – elimination of the conglomerate discount, corporate discard, ignored by market etc. – along… Read More »
Given the plethora of spinoff activity in the oil & gas space and the tendency of big corporations to ‘follow the pack’, it is no wonder that some are already thinking about which company is up next for a spin. In the eyes of Deutsche Bank analyst Paul Sankey, the two biggest names to keep an eye on… Read More »
When it comes to spinoffs, investors often focus on the management teams. One area of interest is compensation. Is management incentivized with long term options or stock to deliver strong performance? Another key issue is location. Who ends up where? There is a belief that top execs know the business best and want to be where the real… Read More »
Just a few months after initiating a strategic review of its options, Cookson (LSE:CKSN) got the go ahead from its largest shareholder to proceed with a spinoff of its performance materials division. The new company will be named Alent plc and become a leading ‘global supplier of advanced surface treatment plating chemicals and electronics assembly materials’. This isn’t… Read More »
Could we be losing one of the most anticipated spins of the year? Might be, as McGraw-Hill (MHP) entered into exclusive negotiations with Apollo Global Management (APO) regarding the possible sale of its education unit. The company had been preparing itself for a spinoff, but was simultaneously running a bidding process for the unit. Final offers were submitted… Read More »
United Online (UNTD) reported solid Q3 results last week and also provided a brief update on the status of its upcoming spinoff. According to Chairman, President & CEO (all 3? corporate governance issue anyone?) Mark Goldston the company is “continuing to make progress in our plan to spin-off FTD as an independent, publicly-traded company,” and expects the process… Read More »
Like many others, I was first introduced to the world of spinoff investing by reading Joel Greenblatt’s You Can Be A Stock Market Genius. Horrible title (and cover), but great book. In a sense, you might even say that he is the grandfather of this site. Naturally, I am always interested in hearing what he has to say… Read More »
Marchex Inc (MCHX) announced that it would spin off its domain and advertising name marketplace into a new company called Archeo. The company enables the buying, selling and development of digital properties and ad inventory. Although it has been slowly unloading its portfolio, it still has a healthy pipeline of domain names for sale and as a standalone… Read More »
Maybe life isn’t so easy for corporate activists these days. After acquiring a ~9.5% stake in specialty truck maker Oshkosh Corporation (OSK), Carl Icahn has so far been unsuccessful in his push for a spinoff of lift equipment maker JLG. Even after his slate of directors lost at the most recent election, Mr. Icahn has not given up… Read More »
Nothing like a hurricane to catch up on some old news. At an investor day in early September, Covidien (COV) announced that the spinoff of its pharmaceutical group was on track for 2013 and would likely be completed by June of that year. The company also unveiled the new name for the company: Mallinckrodt Pharmaceuticals. The name choice… Read More »
The excitement over Dean Foods’ (DF) spinoff of its organic segment WhiteWave Foods Company (WWAV) was easy to see. Dean’s stock price quickly shot up on the announcement and the stock was able to hold onto those outsized gains. Another sign was that investor demand for the IPO was so strong that underwriters exercised the over-allotment clause adding… Read More »
It took AMR (AAMRQ) years to give up on selling American Eagle, its regional air unit, and decide to spin it off to shareholders. Unfortunately, soon thereafter, the company voluntarily entered bankruptcy. Talk about bad timing. Throughout the process though, and most recently earlier this month, American Eagle CEO Dan Garton has reiterated that he expects American Eagle to be spun… Read More »
Activist investors have been notching so many wins recently that victory over management almost feels inevitable. Have corporate executives just thrown in the towel? Don’t be so quick to write them off, as Agrium (AGU), the Canadian fertilizer company and Jana Partners’ most recent target, is fighting back. Before delving any deeper, it is worth noting that Agrium… Read More »