During last week’s shareholder meeting, Lear (LEA) CEO Matt Simoncini said the company would not be pursuing a spinoff of its electrical business after determining that it would destroy value and eliminate synergies. The breakup idea first surfaced in early February when Mick Mcguire’s Marcato Capital sent a letter to the board urging the company to consider spinning… Read More »
The YUM Brands (YUM) spinoff story continues to develop and it feels like a spin is becoming more a matter of ‘when’ vs. ‘if’. Breakup speculation has been rife for quite some time, but the recent ‘catalyst’ of activist funds Corvex Capital and Third Point taking sizable stakes seems to have kicked the frenzy into a new gear. Apparently… Read More »
Like the famed bunny, the Energizer Holdings (ENR) spinoff just keeps on going more than a year after the initial announcement. These things do take awhile and it’s not like progress isn’t being made. For example, the company recently announced a $600m notes offering for the future household products company (mainly batteries) which will retain the Energizer name and… Read More »
The WSJ recently reported that ATM & cash register equipment maker NCR Corp (NCR) is considering ‘its strategic options’, including a possible spinoff or asset sale. NCR has a long and rich history, including making the first mechanical cash register, but the company’s stock price has been lagging as point of sale transactions and cash register use is… Read More »
The M&A market remains hot and the latest billion dollar deal is Verizon’s(VZ) proposed $4.4 billion takeover of AOL Inc. (AOL). The deal expands Verizon’s video and advertising ambitions while also providing AOL a larger platform to compete against the big boys in the space such as Google (GOOG). The WSJ has a nice piece laying out the possible… Read More »
We have written about British pharma giant GlaxoSmithKline (GSK) a number of times over the past few years, but so far, none of the rumored spinoffs have ever come to fruition. It seems that will remain the case, as CEO Andrew Witty announced that the company would not be pursuing a spinoff of its HIV-centric Viiv. GSK owns over 80%… Read More »
Given its ubiquitous products and tremendous success, it isn’t surprising that everyone seems to have an opinion about Apple (AAPL). There are haters and fanboys and those in between, but all seem to get emotional when discussing the company’s products. Even the stock brings about heated conversations. One area of the company that has gotten a lot of… Read More »
Back in March, United Technologies (UTX) announced that it was exploring its strategic options for its Sikorsky aircraft business. Naturally, a tax free spinoff is one of the options currently under consideration and was the only one called out by name in the press release. The company is famous for its helicopters and is one of the largest ‘primes’ in… Read More »
All the way back in December 2012, pure play copper mining giant Freeport McMoran (FCX) decided to diversify its asset base by moving into the energy space. The company offered rich premiums to acquire both McMoran Exploration (which it had spun off back in the 90’s) and Plains Exploration & Productions in a widely panned move. It didn’t help that there were numerous ethical… Read More »
YUM! Brands (YUM) has been getting a lot of attention recently and it seems lots of people have ideas on how the company can deliver more shareholder value. Earlier this year, Janney analyst Mark Kalikowsky argued for setting Taco Bell free in a bid to unlock value, given Taco Bell’s purely North American exposure. It hasn’t just been the sell side… Read More »
Countering published reports that Symantec(SYMC) was shopping its Veritas unit for sale despite a previous announcement of a spinoff, CEO Michael Brown said in an interview that he is moving ahead with the spin. It is thought that the tax implications of a sale make it an unattractive option for shareholders. “That’s the plan, to spin it,” Chief… Read More »
Last year, Gannett (GCI) finally decided to follow the pack and spin off its publishing assets into a standalone company. Given its storied history, the publishing group will retain both the Gannett name and GCI ticker, so the corporate braintrust had the opportunity to pick an exciting original name for its new digital and broadcasting business. Most people… Read More »
Less than 3 years after being spun off from then Kraft Foods (now the ill-named Mondelez [MDLZ]), Kraft Foods Group (KRFT) has agreed to a merger with Heinz. Heinz was taken private in 2013 by Brazilian private equity firm 3G capital, with backing from Warren Buffett’s Berkshire Hathaway(BRKA,BRKB). Berkshire Hathaway and 3G will be injecting an additional $10 billion… Read More »
While we are on the topic of Sandell Asset Management, it’s worth noting that firm suffered a setback earlier this month in one of its other major holdings, Bob Evans Farms (BOBE). The restaurant and refrigerated foods company dropped almost 20% after reporting a disappointing quarter and slashing rest of the year guidance due to weakness in its… Read More »
After disappointing guidance for this past quarter, Brookdale Senior Living (BKD) is under public assault from event driven firm Sandell Asset Management. Brookdale is one of the largest senior housing and care providers in the United States. Not to fear though, Mr. Sandell, head of the firm, has ideas and sent an open letter to the company suggesting: 1) the… Read More »