Dearest Readers, we have a confession to make. We fell short of the sacred trust you have placed in us, and were, somehow remiss. You see, it seems, that other than to mention an index change, we never discussed Air Products and Chemicals (APD) October 2016 spinoff of Versum Materials (VSM). We apologize profusely for this breach and… Read More »
Humans are nothing if not pattern recognition machines. Even in random data, we see patterns. So Bloomberg’s report that Jorge Paulo Lemann’s 3G is expected by some to be ready to do another large deal is no surprise. Never mind that the supposition is based on a mere two data points: two years separated 3G’s 2013 acquisition of… Read More »
Suntory Holdings will acquire Beam Inc (BEAM) for ~$13.6b in cash or $83.50 per share, representing a 25% premium to Friday’s close. Beam, owner of Jim Beam, Makers Mark, Canadian Club and more, is the largest US based spirits maker and the combination with Suntory will create the third largest spirits player in the world. The deal has… Read More »
News of Nelson Peltz’s Trian Fund Management ridding itself of all Kraft related positions turned out to be off…very off. In an amended Q4 13F filing released last week, the hedge fund revealed a large stake of over 19 million shares (a bit more than $600m worth) in Kraft’s international snacks spinoff Mondelez International (MDLZ). There was still… Read More »
13F season is always fun as it provides a rare (albeit delayed) glimpse into the thinking of large money managers and hedge funds. Of course, due to the significant time lag (~45 days), the exclusion of certain securities (shorts, derivatives etc.) and varying investment strategies and holding periods, the usefulness of such data is…questionable in many cases. Not… Read More »
Appearing on Fast Money this evening, Doug Kass predicted that another hedge fund manager would join Bill Ackman of Pershing Square Capital by taking a big stake in Procter & Gamble(PG), and that together they would force the company to split into two or three pieces. Kass said the stock price would increase $7-$10on such an announcement. With… Read More »
I was first introduced to General Growth Partners (GGP) several years ago at a small alumni gathering featuring Pershing Square’s Bill Ackman as the keynote speaker. Amongst other topics, he spoke about the then bankrupt (trading at <$1) company as his ‘top’ idea at the time. This ‘idea’ turned out to be quite profitable for him as he… Read More »
With General Growth Properties (GGP) completing another spinoff,Rouse(RSE) last week, it is worth checking in on how its first spinoff, the Howard Hughes Corporation (HHC), has fared. Here is a recent chart detailing HHC’s stock price since inception (apologies for the charting software – on vacation): It has been quite a wild ride for the company – a relatively… Read More »
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 »
Image via Wikipedia Amidst the turmoil of 2009, my alma mater hosted a small gathering for its alumni working on Wall Street. Typically, these events involve a fair amount of drinking, active networking, soliciting of donations and the inevitable token ‘brief’ remarks from someone in the industry. That evening’s guest of honor was none other than Bill Ackman,… Read More »