Last week, we noted a few examples of the ‘ugly spinoff’ phenomenon where really ugly looking spinoffs end up performing really well. These businesses often have dim growth prospects, low margins and are often initially larded up with debt or other legacy problems. Despite those challenges, the ‘bad business’ stocks often do well as the companies finally have… Read More »
eBays’ (EBAY) long awaited spinoff of Paypal (PYPL) will be completed after the close today and the first day of trading for the new company will be Monday, July 20th. The breakup idea goes back a looooong way and was actually the subject of one of our first articles. EBAY shareholders should receive one share of PYPL for… Read More »
In this issue of the Index Change roundup, Noble Corporation’s (NE) upcoming standard spec rig spinoff, Paragon Offshore, will be added to the S&P Smallcap 600. Noble will remain in the big boy S&P 500 index so there is the possibility of forced selling in this case. As a result of the transaction, Paragon will boot #600 ranked… Read More »
Noble Corporation’s (NE) board of directors approved the spinoff of its standard spec drilling units, Paragon Offshore. The distribution is expected to take place on August 1st, which is just a few months after the company decided to scrap its plans to IPO the unit. Impressive turnaround on Plan B. The new company will trade on the NYSE… Read More »
Noble Corp (NE) has finally unveiled the new name for its upcoming standard spec drilling unit spinoff. No fancy consultants used here, no Russian sex act, no Portmanteau. Instead the company went bold and set the bar high by naming the new company Paragon Offshore. No surprise coming from a company with the name Noble. In fact, the… Read More »
Though it is not expected to come up for a shareholder vote until Q2 2014, Noble Corporation(NE) is making progress with its plan to spin off its non-deepwater assets. Noble announced last week that it had received a private letter ruling from the Internal Revenue Service relating the the expected tax-free status of the proposed transaction. Though this… Read More »
Noble Corporation (NE) is going deep after announcing plans to spin off a business holding most of its standard specification drilling units. The new company’s assets will include ‘five drillships, three semisubmersibles, 34 jackups, two submersibles, and one FPSO’ and also be responsible for the Hibernia platform operations. Noble will continue to own and operate its high-specification assets, ~35 rigs… Read More »