Forbes continues to pump out the spinoff ideas. The other week, we highlighted a Forbes piece nominating five companies ripe for a spinoff, including big names such as Disney (DIS) and Time Warner (TWX). That wasn’t all though. A recent idea in Forbes by Richard Stiennon was that chip powerhouse Intel (INTC) should spin off McAfee, its internet security… Read More »
Ventas (VTR) completed the spinoff of its skilled nursing facilities into the brand new Care Capital Properties (CCP) yesterday. Shareholders should have received 1 share of CCP for every 4 VTR shares owned. The new company is set to join the S&P 400 Midcap index and will be replacing Omnicare which is in the process of being acquired by… Read More »
Emergent BioSolutions (EBS) announced that it will spin off its Biosciences business into a standalone entity. So what do they mean by ‘biosciences’? The new company will ‘focus on providing novel oncology and hematology therapeutics to meaningfully improve patients’ lives. The core technology of the Biosciences company will be its ADAPTIR platform applied to immuno-oncology’. More specifically, the new… Read More »
It’s a summer Friday – here are a few links for your enjoyment: 1) Gannett (GCI) recently transformed itself via spinoff (the parent company changed its name to TEGNA(TGNA)) into a print focused business. New CEO Robert Dickey is tasked with building a business in a market that is facing severe secular headwinds. So what is the plan?… Read More »
Yahoo(YHOO) investors may be learning a costly lesson in the dangers of tax efficiency. Under pressure from investors to maximize the value of its Alibaba(BABA) stake, the company unveiled a plan to spin off the stake, with a small business unit, as Aabaco Holdings. The spinoff was intended to avoid paying $12 billion in taxes. For months, however… Read More »
IDT (IDT) has a history of spinoffs, and in the middle of 2013, the company spun off a bunch of its intellectual property and spectrum assets into Straight Path Communications (STRP). Suffice it to say, expectations were low. The company had previously attempted to monetize these assets and failed. The business and assets were difficult to understand and… Read More »
After months of ‘will they or won’t they’ and having its stock whipsawed as a result of buyout rumors, Ntelos (NTLS) announced that it would be acquired by fellow Mid-Atlantic region focused operator Shenandoah Telecommunications (SHEN). Shentel, as it is known, is paying $640m for the company, much of it in the form of assumed debt. NTLS shareholders… Read More »
If the prevalence of spinoff related articles and discussions in the media wasn’t enough of a clue that spins are ‘hot’ right now, the latest news from S&P Dow Jones should serve as a clear sign of their increased popularity. The leading index company announced that they were launching three new indexes in order to meet the ‘evolving… Read More »
W.R. Grace & Co (GRA) filed an initial Form 10 for its upcoming construction products and packaging technologies segment. The new company will be called GCP Applied Technologies and the name refers to Grace Construction & Packaging. In fact, the press release notes that many customers still refer to the business today as ‘GCP’. Of course, the company couldn’t… Read More »
Our Australian readers might be interested in this one. Diversified mining company Independence Group (IGO.AX) recently agreed to acquire Sirius Resources (SIR.AX) for ~ $1.8B AUD. A bold bet given the environment for commodity companies and commodity prices, but Sirius did discover some low cost properties in Australia a few years ago. As part of the transaction, Sirius… Read More »
Poor Irene Rosenfeld. The former CEO of Kraft Foods was badgered by Nelson Peltz’s Trian Group into breaking up her empire in 2012 into the slow growing, North American grocery business, Kraft Foods Group, and the international snack food company Mondelez International (MDLZ). She remained at the top of Mondelez and also (rightfully) took a lot of heat for the… Read More »
Shortly after writing about Ventas’ (VTR) expanding hospital business (and skilled nursing facility spinoff), Community Health Systems (CYH), one of the largest hospital operators in the country, announced plans to spin off 38 of its hospitals along with its hospital management and consulting arm Quorum Health Resources LLC. The new company will take on the Quorum name, except the… Read More »
Yesterday morning we noted Shire’s (SHPG) unsolicited all-stock offer for recent Baxter (BAX) spinoff Baxalta (BXLT). The proposal offered to exchange any Baxalta shares for 0.1687 Shire ADRs, implying a value of $45.23 per Baxalta share. Of course, Shire promptly slumped over 5% so the effective price went down somewhat. The company responded later in the afternoon with a press release… Read More »
The Summer of Spin kicked off a little over one month ago, but already one of the spinoffs might be acquired. Shire(SHPG) unveiled an offer to acquire last month’s Baxter International (BAX) spinoff, Baxalta(BXLT). According to the release, Shire contacted Baxalta in early July- immediately after the spinoff, met briefly on July 10, but Baxalta has not seriously considered… Read More »
A new REIT is coming shortly to sate investor’s income needs. The board of directors at ‘diversified’ health care REIT operator Ventas (VTR) approved the spinoff of its acute care and skilled nursing facilities into a new REIT named Care Capital Properties. On August 17th, shareholders as of August 10th will receive one share of Care Capital for every 4… Read More »