Recent Spinoff Motorola Mobility Falls On Slowing Sales

Image via Wikipedia Just weeks after its debut, Motorola Mobility(MMI) warned that sales were slowing in the face of Verizon’s iPhone introduction.  Despite reporting a profit and beating analyst estimates by $.01, the stock traded down sharply as the company projected a loss for the current quarter. Analysts had, on average expected earnings of $.01 for the current… Read More »

It’s Official Now – Aperam Spun Off From ArcelorMittal

Image via Wikipedia Not surprisingly, an ‘overwhelming majority’ of ArcelorMittal (MT) shareholders approved the spinoff of its stainless and specialty steel businesses today. The new company, Aperam, will be a global leader in stainless steel production, an industry which has been plagued with overcapacity and hurt by the global slowdown. The spin is more conducive to industry consolidation… Read More »

The Spinoff Marathon Continues

Image via Wikipedia Another day, another spinoff. Marathon Oil (MRO) announced today that its Board of Directors has approved spinning off its downstream operations. The new company will be called the Marathon Petroleum Corporation (MPC – also its expected ticker) and will be one of the largest refiners in the United States with assets concentrated mainly in the… Read More »

A Tasty Morsel – Sara Lee To Breakup?

Image via Wikipedia After rejecting JBS SA‘s offer of $17.50/share, Sara Lee (SLE) was rumored to be favoring a breakup strategy which would likely involve the spinoff of either its coffee or meats division.  It is believed that a spinoff would unlock the value of the unrelated businesses and facilitate the sale of each individual unit. While JBS,… Read More »

ITT To Spin Off Divisions- Again

While some companies are new to spinning off divisions, others are known for their serial spinoffs. Few however, can match the fecundity of ITT(ITT)(nee International Telephone & Telegraph). ITT was born out of the Puerto Rico Telephone Company in 1920. Over the next half century, ITT was the classic conglomerate, buying such diverse companies as The Hartford Insurance,… Read More »

Shall We Contango?

Image via Wikipedia Experienced traders and seasoned investors often mention discipline as one of the keys to success in this industry.  While some speculation is encouraged, drawing the distinction between ‘the good’ and ‘the bad’ kind can be difficult. A common misconception is that this only applies to ‘investors’ however, corporations face similar dilemmas when deploying their capital.… Read More »

Tyco Sells Stake In Electrical & Metal Products Unit, Cancels Spin

Tyco International(TYC) has canceled plans, announced in April, to spin off its Electrical & Metal Products unit to shareholders. Instead, Tyco announced on November 9 that it would be selling 51% of the unit, bow called Atkore, to private equity firm Clayton, Dubilier, & Rice for $720 million in cash. Tyco plans to use the cash to repurchase… Read More »

ArcelorMittal Setting Stainless Steel Free

Image by Getty Images via @daylife ArcelorMittal’s (MT) board confirmed its plan to spin-off the company’s stainless steel division in the hope of ‘maximizing shareholder value’ and capturing the division’s growth potential. The new company, which will be called APERAM, will be listed on several international exchanges (including Euronext Paris and Amsterdam), but will only trade OTC in… Read More »

Fortune Brands To Split In Three

Image via Wikipedia In October, when Bill Ackman and Pershing Square Capital disclosed an 11% stake in Fortune Brands(FO), there was speculation that he would push the conglomerate to break up.  Today, Fortune announced plans to break into three companies. Fortune itself would retain its Premium Spirits business, led by venerable brands such as Jim Beam, Maker’s Mark,… Read More »

No Fool: Jim Royal Flush With Spinoffs, Likes Sabra(SBRA)

Jim Royal, one of The Motley Fool’s “Rising Stars”, sure has taken a liking to spinoffs. He recently penned a brief note pegging recent spinoff Sabra Healthcare REIT(SBRA), and future spinoffs Rainbow Media and Northrup Grumman’s(NOC) shipbuilding unit as “Spinoff Stocks Worth Watching“. In a followup piece, Royal recommends buying Sabra, which recently spun out from Sun Healthcare(SUNH).… Read More »

IDT Releasing The Genie From The Bottle

Cover via Amazon A corporate conglomerate is truly a wonderful thing. Growth through acquisitions often leaves these companies quite bloated and operating in unexpected areas though. Sometimes this is done on purpose in order to diversify exposure by investing in unrelated areas. These ancillary businesses surrounding the ‘core’ can be quite surprising and make you go ‘Really?’ –… Read More »

Is There A Pot Of Gold At The End Of Cablevision’s Rainbow?

Image via Wikipedia Cablevision Systems Corporation(CVC) which spun off Madison Square Garden(MSG) earlier this year is back at it, announcing that it plans to spin off its Rainbow Media Holdings business in mid-2011. Rainbow Holdings owns such popular cable channels as AMC, WE, IFC, and Sundance.  Investors appeared enthused about the move, with the stock moving up 6.84%… Read More »