Marketfolly recently posted a talk with The Baupost Group’s Seth Klarman from 2009, which some may remember as quite an interesting time in the markets. Mr. Klarman is considered one of the ‘great’ value investors and his words and writings are devoured by both aspiring and professional investors alike. The talk hits on a number of interesting areas (and… Read More »
Given their increased popularity and media coverage, spinoffs have recently received a lot of attention from regulatory bodies such as the IRS. In fact, one of the under reported items coming out of last year’s budget battle was Congress taking a stand against non-real estate companies spinning off REITs. Essentially, the bill requires a spinoff to wait 10… Read More »
After years of accounting related delays and management changes, Hertz’s (HTZ) spinoff of its equipment rental business, Herc Holdings, has finally been approved by the company’s board of directors. The mechanics and distribution ratios of the transaction are a bit kooky due to Hertz’s complex corporate structure: Stockholders of record as of the close of business on the record… Read More »
Yesterday, Zedge(ZDGE) completed its spinoff from IDT(IDT). The press release is short on details, focusing on the usual boundless optimism associated with a new spinoff. Tom Arnoy, co-founder and CEO of Zedge, said, “Since our inception, we have been focused on developing an exceptional service that enables Zedgers to express their identity, feelings, tastes and interests on their… Read More »
Hilton Worldwide Holdings(HLT) announced this morning that it has filed Form 10 registration statements for two previously announced spinoffs of its real estate and timeshare businesses. CEO Christopher J. Nassetta said the spins will be completed later this year. Following the transactions, Nassetta will continue to lead Hilton, which will be an asset-lite fee-based business. On a pro forma… Read More »
Eric Schmidt has a message for investors who think that Google’s shift to the Alphabet(GOOG) holding company structure and businesses increasingly far afield from search indicate a future breakup- don’t hold your breath. Schmidt, Alphabet’s Executive Chairman, spoke on the topic last week. When asked during Bloomberg’s Breakaway Summit on Wednesday whether the multifaceted company with a plethora… Read More »
Serial spinner IDT(IDT) has set the date for its spinoff of Zedge(ZDGE). IDT shareholders as of May 26 at 5PM will receive one share of Zedge for every three IDT shares that they own. The spinoff will be effective at 11:59PM on June 1. The company’s most recent form 10 can be found here. We recently had the… Read More »
File this under totally expected news: Freeport-McMoran (FCX) has officially withdrawn its registration statement for the planned IPO of its oil & gas business. Although no official reason was provided, I can’t imagine investor appetite for an oil & gas IPO was especially strong in the current environment. In fact, it seems much more likely that we will see… Read More »
After discussing the importance of a spinoff’s tax free nature the other day, of course, there is a big spinoff on the horizon which will be treated as a taxable dividend for shareholders. Due to complications arising from its merger with Tyco (TYC), Johnson Controls’ (JCI) automotive and interior business spinoff will indeed be taxable upon its separation… Read More »
Last October, Yum Brands(YUM) finally agreed to spin off its China business under pressure from investors including Keith Meister of Corvex Management. Corvex owns 5.2% of Yum, and Meister sits on the board. Yum, parent of brands including Pizza Hut, KFC, and Taco Bell, has 7,205 restaurants in China which collectively earn over $1 billion each year. Currently,… Read More »
Earlier today, we reported that former Dean Foods(DF) chair Tom Davis and Las Vegas gambler Billy Walters were being charged with insider trading related to Dean Foods’ 2012 announcement that it would be spinning off WhiteWave(WWAV). We also noted that professional golfer Phil Mickelson was said to have been given the tip. Bloomberg now reports that Mickelson is… Read More »
CNBC reports this morning that former Dean Foods(DF) chair Thomas Davis will be charged with insider trading, along with well-known Las Vegas gambler William “Billy” Walters. Davis had resigned last year as rumors swirled of the investigation into insider trading based on nonpublic information regarding Dean’s Whitewave(WWAV) spinoff. Walters is believed to have passed the tip along to professional… Read More »
Founded by Steven and Mitchell Rales, Danaher Corporation(DHR) is one of the most successful business stories of the last three decades. One of just 44 companies with a cumulative total return of greater than 10,000% over that time period(it’s the 6th best performer), this powerhouse will be spinning off Fortive, its Professional Instrumentation and Industrial Technologies business, on July… Read More »
It took years and featured a number of delays, but WestRock (WRK) finally completed the spinoff of its specialty chemicals business, Ingevity (NGVT). The new company began trading on the NYSE today and shareholders should have received one share of NGVT for every six shares of WRK owned. As usual, executives are excited about the future prospects and here… Read More »
It may sound like an alien planet, but Honeywell(HON) shareholders should prepare to see AdvanSix in their portfolios early next year. On the heels of a rebuffed and withdrawn offer for United Technologies(UTX), Honeywell has decided to slim down, announcing that it will spin off its Resin and Chemicals by early-2017. The new company which will be named… Read More »