Analysts at Goldman Sachs (GS) made waves last week suggesting that megabank JP Morgan (JPM) break itself up in response to the heavy capital restrictions imposed on the bank by the Fed.The WSJ’s Heard On The Street column thinks it’s a good idea, just tossed at the wrong bank. Instead of the House of Dimon, the WSJ thinks… Read More »
Alliant Techsystems(ATK) has taken another step forward towards its spinoff of Vista Outdoor and subsequent merger with Orbital Sciences(ORB). The transaction, which is back on track after a delay caused by the fiery explosion of an Orbital Sciences Antares rocket, is now expected to be completed on February 9. ATK shareholders will receive two shares of Vista Outdoor,… Read More »
It’s amazing how much stuff gets done on December 23rd because no one wants to work during the holidays. That includes corporate boards, such as the one at Vornado Realty Trust (VNO) which approved the spinoff of the majority of its retail strip malls, Urban Edge Properties. The distribution is expected to take place on January 15th to… Read More »
Some activist funds like to work behind the scenes and then there are the others which seem to be in the news almost every day. A day after making waves at Yahoo (YHOO), Jeffrey Smith’s Starboard Value fund was back in the news after long time target MeadWestvaco (MWV) announced plans to spin off its specialty chemical business… Read More »
A team of Goldman analysts led by Richard Ramsden raised quite the storm earlier this week by releasing a 20 page research note suggesting that JP Morgan (JPM), one of the world’s largest banks, should break itself up. Apparently the bank is a victim of its own success (isn’t that just the best kind of victomhood?) and has… Read More »
In the middle of 2014, Relational Investors was busy notching another activist victory, this time at Timken (TKR), while also building up the case on its newest target, The Manitowoc Company (MTW). In short, the firm argued that a foodservice business selling machinery to restaurants didn’t have any reason to be paired with a crane equipment business. As… Read More »
Two years after successfully fending off legendary activist Carl Icahn and his plan to break up the company, some think that Oshkosh Corp(OSK) management may be planning a spinoff of its own. Maureen Farrell of the Wall Street Journal reports on a recent note by CreditSights analyst Jeff Wichmann. Wichmann suggested that Oshkosh may be considering a spinoff… Read More »
https://www.youtube.com/watch?v=UsvUVDTgPoI The dramatic explosion of Orbital Sciences'(ORB) Antares rocket on October 28 delayed a planned merger with Alliant Techsystems(ATK), but it will not derail it. Last April, Alliant announced it would spin off its sporting goods business and subsequently merge its defense business with Orbital. The sporting goods business will be known as Vista Outdoor,Inc. As might be… Read More »
After 31 rounds, the FCC’s AWS-3 auction has reached $36 Billion in bids. This has pushed up the value of Dish Network’s(DISH) shares, as the company already owns spectrum that, in the eyes of some analysts, is more valuable than what is currently being auctioned. In addition, TMF Associates identifies Dish as a major bidder in the current… Read More »
Late last month, Procter & Gamble(PG) announced that it would be divesting its Duracell business. At the time, its preferred outcome was to spin off the division to shareholders. The second step is the exit of the Duracell business. Although no decision has been made on the form of the exit, P&G’s current preference is a split-off of… Read More »
A subclass of spinoff that has proven popular, especially under activist pressure has been the spinoff of real estate assets into a publicly traded REIT. Civeo’s (CVEO) spin from Oil States (OIS) was one example, though the company has now opted against REIT status, as was Penn National Gaming’s (PENN) spin of Gaming & Leisure Properties (GLPI). Now,… Read More »
We wrote last week about Madison Square Garden Company’s(MSG) plan to explore a spinoff of its sports and entertainment business. The company is in the early stages of planning this transaction and there still remain many unanswered questions. Capital New York reports that CEO Tad Smith confirmed on last Friday’s earnings conference call that the company has not… Read More »
Crimson Wine Group (CWGL) dropped a 134 word bomb today with the news that as of November 3rd, CEO Erle Martin was ‘no longer an employee’ of the company. The company slipped the news in a brief 8K filed with the SEC and offered no additional details on the move, and issued no press release. The board is… Read More »
Kimberly-Clark (KMB) officially completed the spinoff of its health care business, Halyard Health (HYH). The new company began trading ‘regular way’ on the NYSE today under the ticker ‘HYH’ and Kimberly-Clark shareholders as of the date of record should have received 1 HYH share for every 8 KMB shares owned. While the parent company’s press release was pretty muted,… Read More »
Less than a month after being spun off from Automatic Data Processing (ADP), CDK Global (CDK) has already attracted the interest of an activist investor. Sachem Head Capital Management, a firm led by Bill Ackman protege Scott Ferguson, has amassed a 9.8% stake in the company and is ‘seeking talks’ with management. This must be some type of record.… Read More »