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 »
Sorry, Mr. Loeb, it looks like it’s only going to be $219 per share for Amgen (AMGN). The biotech leader hosted a business update session yesterday and CEO Robert Bradway wasted no time in addressing the proverbial 800lb gorilla in the room. Within his opening remarks, Mr. Bradway noted that although they understood the pressure to break up, the company… Read More »
The end of the month is jam packed with spinoffs which means that the major indices will be making some changes as well. In this case, two S&P 500 companies, Agilent (A) and Kimberly-Clark (KMB), are spinning off units which will join the S&P Midcap 400: Keysight Technologies Inc. (NYSE:KEYSwi) will replace Universal Corp. (NYSE:UVV) in the S&P… Read More »
Despite being independent for a mere five months, Civeo (CVEO) has sure generated a lot of excitement. Many anticipated that the company, a spinoff from Oil States International (OIS), was destined to become a REIT in order to better distribute its income. REIT status would also theoretically offer the company a more premium market multiple, boosting its price.… Read More »
The Dolan family is at it again. Perhaps inspired by the master of the spinoff, fellow cable mogul John Malone, 2010 Cablevision(CVC) spinoff The Madison Square Garden Company(MSG) has announced that it is exploring spinning off its Media and Sports business from its Live Entertainment business. The company’s Board Of Directors unanimously approved the plan to explore the… Read More »
Speculation began almost immediately after Dan Loeb’s Third Point impressively raised $2.5b in just two weeks this summer. Who would the new targets be? Existing investments? Foreign companies? One new mark was just identified in the fund’s most recent quarterly letter as Amgen (AMGN), the $100b+ market cap biotech giant. The letter, which is worth a read in its entirety, suggests that… Read More »
At the beginning of the year, QEP Resources (QEP) unveiled a few strategic initiatives including the sale of its non-core assets and the spinoff of its midstream business, Entrada Midstream. The plan was concocted amidst activist pressure (Jana Partners recently exited QEP though) and the idea was to increase the company’s focus on its upstream business and deliver better… Read More »
The Babcock & Wilcox Company’s (BWC) board of directors are currently huddled around a spreadsheet filled room trying to figure out if separating its government & nuclear operations from its power generation business makes sense. At least that is how I imagine their ‘evaluation’ process although the reality probably includes a whole bunch of advisors doing most of… Read More »
Last week, we wrote about the nosedive in Civeo (CVEO) shares following lousy guidance and the announcement that the company would redomicile in Canada as a C corp instead of pursuing REIT status. Although the logic seemed reasonable, the decision was somewhat surprising as the REIT conversion seemed to be viewed as a big value driver by large, activist shareholders such… Read More »
Earlier this year, Kimball International (KBALB) unveiled plans to break up the oddly paired family business by separating its contract electronic manufacturing business, Kimball Electronics, from its furniture business. Well, with board of director approval, the spinoff is now official. The transaction is set for the end of the month (October 31st) and both Class A & B shareholders will… Read More »
Last month, Compuware(CPWR) agreed to be acquired by private equity firm Thoma Bravo. As part of the deal, Compuware committed to divest all shares of Covisint(COVS) that it retained after conducting an IPO within 60 days. Well within its window, Compuware announced on Friday that it would be distributing the shares at the end of the month. Compuware… Read More »
California, the great state known for its warm weather and environmentally friendly laws is about to get its own dedicated oil and gas business. Yes, you read that correctly. On December 1st, the California Resources Company (CRC) will begin trading on the NYSE as an independent entity after Occidental Petroleum’s (OXY) board of directors formally approved its spinoff last week. OXY… Read More »
Only a few scant months ago, Civeo (CVEO) was born, spun out of Oil States International (OIS) after activist pressure from Jana Partners and David Einhorn. The plan was for the workforce accommodations firm to convert to a REIT, as we described in this May post: Looking ahead, Civeo is studying the possible conversion to REIT status however,… Read More »
Panicked Automatic Data Processing (ADP) shareholders need not worry about their stock appearing on many ‘Top Losers’ lists yesterday. Yes, the company declined a lot, but that was due to yesterday being the first day of trading following the spinoff of its dealer services business CDK Global (CDK). ADP shareholders should have received one share of CDK for every… Read More »
We first discussed the idea that Ebay(EBAY) might spin off PayPal nearly four years ago, on October 28, 2010. More recently, the company and CEO John Donahoe repeatedly resisted withering attacks from legendary activist investor Carl Icahn, who began pushing for the spinoff early this year. Today, the company has reversed course, and announced that it will spin… Read More »