We are big fans of Jana Partners here. Although the fund describes its investment approach as ‘value plus catalyst’, it’s not afraid to get vocal and create its own catalyst. Just ask Agrium’s (AGU) management team. While that situation didn’t achieve the desired result, the firm has notched numerous activist victories including the spinoffs (or possible spins) at… Read More »
Well…that was relatively quick. Shortly after entering into exclusive talks with Apollo Global Management (APO), McGraw-Hill (MHP) announced that it has reached a deal with the private equity firm to sell off its education unit. The rumored price tag of $2.5b turned out to be correct, so kudos to those rumormongers. Additionally, as part of the transaction, McGraw-Hill… 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 »
Long time stock columnist Gene Marcial(now of Forbes) thinks McGraw-Hill(MHP) is “the new and potentially robust growth- and-value stock play, as it gets closer to splitting up into two companies“. Marcial says that the stock , which has risen from $34 last August to over $49, may have more room to go up in the next year. Some bulls… Read More »
Despite previous speculation that the company might sell, rather than spin, its Education business, in today’s earnings announcement, McGraw-Hill(MHP), provided an update on the spinoff plan, and stated that it “remains on track to establish two separate industry leaders by year-end.” The company “has received a ruling from the Internal Revenue Service agreeing to the tax-free status for… Read More »
McGraw-Hill(MHP) confirmed that it continues to move forward with a spinoff of its Education business, calling it ‘Plan A’, even while it engages in talks with potential buyers for the business. It is believed that the division is worth more than $2.5 billion. On today’s earnings conference call, the company indicated that the spinoff continued to be on… Read More »
Activist investors appear to be back and are once again using their clout to influence corporate decision making. Occasionally, this can lead to a spinoff such as the case with Bill Ackman’s Pershing Square and Fortune Brands (FO) or Carl Icahn and Motorola. Of course, not every company is looking for outside ‘advice’. Consider the recent news regarding… Read More »