John Malone is at it again. Liberty Media Company(LMCA), a former tracking stock that was spun out from his core Liberty Interactive(LINTA), will be spinning off its Starz subsidiary. The Starz spinoff will contain the operating assets of Liberty Media, including the Starz and Encore premium cable networks. Liberty Media’s assets after the spin will primarily be its… Read More »
After the close this afternoon, together with reporting its earnings, Dean Foods(DF) announced it would conduct an IPO for part of its WhiteWave-Alpro division, and subsequently distribute the rest to its shareholders. We have not yet read through the S-1 filing, which can be found here. From the earnings release, we learn: Separately, Dean Foods announced today that… Read More »
There are many hundreds of thousands of words in the English language, and zoetic is not one of the more common. The word, meaning “of or relating to life”, is the inspiration for Zoetis, the new name for Pfizer’s (PFE) soon to be independent Animal Health business. After over a year of speculation as to how Pfizer would… Read More »
With spinoffs ‘hot’ right now, there is plenty of speculation as to what the next one will be. The Motley Fool’s Michael Lewis recently offered his opinion, suggesting that DirectTV (DTV) spin off its Latin American operations from its slower growth US business. The idea is that the Latin American markets are showing higher subscriber growth, the pay-TV… Read More »
Rejoice, oh lovers of oddly named companies. Prepare, chronic mis-pronouncers. The North American Grocery business of the crafty Kraft(KFT) will be spun off and trade under the new ticker KRFT. The stub will be renamed Mondelez(this rhymes with Oh Puhhleez) International, despite our valiant efforts to stop this awful name, and trade under the ticker MDLZ. Speaking of… Read More »
Remember dial up internet? Remember Juno and NetZero? United Online(UNTD) owns both brands and continues to generate cash flow from its legacy dial up business, though it continues to decline. The company has used this cash to pay a nearly 10% dividend, and to diversify its revenue stream by acquiring other businesses. Yesterday, United decided it was time… Read More »
It can be tough to stay on top of spinoff related news due to the time lag between announcement and completion. Months can often pass before new, useful information is released leading to lost interest. That must explain the lack of reader feedback on Egypt’s Orascom Construction Industries (ORSCY) planned separation of its construction business from its fertilizer… Read More »
Tough times for Genworth Financial (GNW) shareholders. The name was one of the worst performing stocks in Q2 and unfortunately Q3 might not be much better. The name was punished again, down over 9% at some points, after several disappointing comments made by acting CEO Martin Klein during Tuesday’s Q2 earnings call. Mr. Klein noted that a spinoff… Read More »
It’s been a few quarters since Orchard Supply Hardware(OSH) was spun off from Sears Holdings(SHLD). The stock continues to trade at similar levels to where we felt it was a reasonable buy soon after its spinoff. Yesterday, the company issued a brief press release which contained three critical pieces of information. Comparable Store Sales were up 0.9% –… Read More »
While releasing its Q2 earnings, Valero Energy (VLO) also dropped news of its plans to separate retail unit. While Valero is best known for its refining business, the company also operates over 6,000 retail and branded wholesale outlets. According to CapIQ, for the FYE 2011 the retail segment generated $11.7b of revenues and $381m of EBIT, small potatoes… Read More »
That was quick. Weeks after its spinoff from Hilshire Brands(HSH), the former Sara Lee, DE Master Blenders 1753(DEMBF) announced today that it had found accounting irregularities, and would be restating results. These are definitely words no investor wants to hear, and they tend to get bigger the more they get looked at. Here is how the company describes… Read More »
Spinoffs are supposed to be a clean break; an opportunity for two new companies to seek their own fortunes. But, as David Nicklaus points out at the St. Louis Post Dispatch, when things go sour with the child, the former parent may still be on the hook. He writes about Patriot Coal (PCXCQ) which was spun off from… Read More »
Cash America(CSH) has withdrawn plans to conduct an IPO of the majority of its Enova International unit. The company had announced last September that it intended to offer a majority of the unit to investors, but retain a 35% to 49% stake. Cash America shareholders would not have received shares in the new firm. Cash America would have… Read More »
It’s been well over a year since we mentioned that Siemens(SI) was looking to divest its Osram lighting unit. Now, 16 months later, unable to get the price it wanted, or to conduct an IPO, the company plans to spin off the unit to shareholders. On its recent conference call, Siemens CEO Peter Loscher announced the plans: As… Read More »
It’s always sad for us here when a spinoff is cancelled, but those situations are often worth filing away as there is always the chance that the situation gets revived. The market could be better, certain hurdles cleared, you never know. The latest example is IDT’s (IDT) recent announcement that it is resurrecting its plans to spin off its patent… Read More »