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 Intevac (IVAC) from the smallcap index. It must be very unnerving sitting at the bottom of the rankings, just waiting for some spinoff to give you the boot. Those companies are probably not fans of this site.
As we previously noted, the spinoff is set for August 1st and shareholders will receive 1 share of ‘PGN’ for every 3 shares of NE owned. The company will be led by Randy Stilley and I am sure management is hoping that Paragon fares better than the last spinoff Mr. Stilley helmed (Seahawk) which ended up being liquidated.
Click here for all of our earlier coverage of this transaction.
Disclosure: Author holds no position in any stock mentioned.