We discussed one scrapped spinoff earlier this week – Brunswick’s Life Fitness – but, alas, it wasn’t an isolated incident. In this edition of Odds & Ends we catch you up on the latest in abandoned spin plans: 1. Thyssenkrupp’s Elevator Spinoff thyssenkrupp (TKAMY) shocked the markets with a stunning strategic about face ‘reset’ last week. Seven months… Read More »
Much ink was spilled, on these pages and countless others, discussing Yahoo’s plan to spinoff its stakes in Alibaba(BABA) and Yahoo! Japan as an independent company. For much of 2015, the company planned to spin off this stake, together with a Yahoo’s small business unit as Aabaco Holdings. The small business unit was included to maintain the tax… Read More »
With Elliott and Starboard pushing for changes at eBay (EBAY), including the spinoffs of StubHub and Classifieds, there was more than the usual focus on eBay’s earnings report last week. The company reported record earnings, initiated a dividend and increased its buyback authorization, but signs of concern remain. Elliott, for one, is unimpressed. “eBay’s fourth quarter earnings provided… Read More »
In 2015, under pressure from legendary activist investor Carl Icahn, eBay(EBAY) chose to spin off PayPal(PYPL). While PayPal stock has performed remarkably since the spin-off, eBay stock’s performance has been decidedly prosaic. With this backdrop, not one, but two activist investors have entered the stage and begun pushing for changes. Of course, most relevant to us is that… Read More »
Let’s kick off the week with some deal talk. Last week we touched on Apollo’s (APO) potential buyout of Arconic (ARNC) and if completed, it would just be another example of spinoff/parent company being taken out. Once the separation announcement is made or even the ‘strategic alternatives’ one, the market knows that a sale is possible. In that vein,… Read More »
Hedge fund TCI is going ‘active’ at Altaba (AABA), urging the company to liquidate if it can’t do a better job narrowing the fund’s discount to NAV. For those that don’t remember, Altaba is just a collection of assets left over from Verizon’s (VZ) 2017 purchase of Yahoo. The real value rests mainly in two pieces: a large… Read More »
Last month, we reported that Macy’s(M) outgoing CEO Terry Lundgren was working to head off a proxy fight with Jeff Smith’s Starboard Value. Lundgren was said to be looking to Hudson’s Bay Company(HBAYF) as a white knight under renewed pressure from Starboard to spin off or otherwise monetize its real estate. A month later, Hudson’s Bay is out… Read More »
Last Friday we wrote about Tronc(TRNC), the company formerly known as Tribune Publishing. Catching up on our reading, we came across a bullish piece from last week’s Barron’s on Tronc’s former parent, Tribune Media(TRCO). Despite a 30% increase in the last month, in part on speculation of a sale of the company, Barron’s continues to see significant upside… Read More »
As we discussed back in November 2015, Starboard Value Partners, led by the brash Jeffrey Smith, had acquired a stake in Macy’s(M) and pushed for a spinoff of the real estate into a REIT(Real Estate Investment Trust). Now, with the stock down 60% from Starboard’s purchase price and longtime Macy’s CEO Terry Lundgren stepping down, the plan may… Read More »
NeuStar (NSR) agreed to be acquired by a group led by private equity firm Golden Gate Capital in a deal valued at about $2.9b. The deal was announced in mid-December and the $33.50 offer price represented a nice premium. Of course, the sale also means that Neustar’s previously announced Order Management and Numbering Services spinoff is off the table.… Read More »
After delaying the spinoff of its chemical business due to ‘complexities’, WestRock (WRK) is finally ready to complete the spinoff of Ingevity. The transaction is expected to be completed on May 15th, with WestRock shareholders receiving 1 share of the Ingevity for every 6 WestRock shares owned. The new company will trade on the NYSE under the ticker… Read More »
Under pressure, once again, from Starboard following the abandonment of its plan to spin off its huge stake in Alibaba(BABA), Yahoo(YHOO) has formed an independent committee of its Board Of Directors to explore strategic alternatives. The Board has formed a Strategic Review Committee of independent directors to lead this effort, with the assistance and support of management. The… Read More »
Wall Street loves spinoffs, but these transactions are hardly simple affairs to execute. There is a reason most of them take more than 9 months to consummate. After pushing off the expected completion date of Ingevity’s spinoff again, it seems WestRock (WRK) is learning that fact the hard way. The specialty chemical spinoff is now expected to be… Read More »
After fighting to push forward with a spinoff of its Alibaba(BABA) stake as Aabaco Holdings since the IRS first indicated its opposition in May, Yahoo(YHOO) and its embattled CEO Marissa Mayer have finally thrown in the towel. After days of intense speculation, the company announced this morning that the Board, “after careful review and consideration of how to… Read More »
What to do when a majority of your shareholders support calling a special meeting before you divest an important asset? Go ahead, ignore them, and do what you want, says Darden(DRI). With the $2.1 billion sale of Red Lobster a fait accompli, despite strong opposition from holders, Starboard Value has stepped on the gas in its attack. While… Read More »