Lets kick off the week with a new edition of odds and ends catching up on some old items: Disney (DIS) acquired 21st Century Fox last month, but a new, slimmed down Fox Corporation (FOX) was spun off just prior to the deal closing. The new Fox is still controlled by the Murdoch family, but it is a… Read More »
That’s what it’s all about. How do you sell off part of your business and not pay taxes? The answer, of course, is a reverse Morris Trust transaction. Ingersoll-Rand(IR) is an Ireland-based industrial conglomerate with a $30 billion market cap and 49,000 employees. Ingersoll Rand is no stranger to these pages, having spun off its security business as… Read More »
Until this week, VF Corporation’s (VFC) upcoming Kontoor Brand’s spinoff only had the vague timetable of ‘sometime in May’. Finally, we have some closure and some concrete details on the jeanswear company’s upcoming independence. The board of directors has now formally approved the spinoff which will take place after the close on May 22nd with shareholders expected to… Read More »
Another month is almost in the books so lets recap the recent spinoff activity and also take a look at what spinoffs the next month will bring: Spinoffs Completed Prior Month Some big spinoffs in April. April 1st – after several years of merger integration work, DowDupont (DWDP) began breaking itself up last month with the spin off… Read More »
We thought it was unusual that Dow and Dupont merged into DowDuPont(DWDP) with the plan from the start being to break back up into three companies: Dow(DOW), DuPont, and Corteva. Yet here we are not a month later discussing a similar situation. Last year, Tenneco(TEN) purchased Federal Mogul from Carl Icahn with plans to spinoff the combined aftermarket… Read More »
Mohnish Pabrai may be best known to the world for his hedge fund or for his books such as The Dhando Investor, but on this site it’s for his relatively new Spinoff Portfolio. Unfortunately, despite strong backtested results, 2018 was a rough year for the portfolio. Four of out five names finished in negative territory for the year,… Read More »
When last we left Versum(VSM), the Air Products(APD) spinoff was insisting it was sticking by its merger agreement with Entegris(ENTG), come Hell or high water. Versum had dismissed Merck KGaA’s(MKKGY) all cash $48 a share bid, and Merck was preparing to go hostile. Fast forward a month, and the hostilities have ended with Versum firmly in Merck’s arms… Read More »
Earlier this month DowDuPont (DWDP) began its ‘slim down’ phase with the spinoff of the new Dow Corporation (DOW). The new company received lots of love from the index community. It replaced DowDuPont in the Dow Jones Industrial Average and is also a member of the S&P 500 index. Now it is seemingly also the darling of the… Read More »
Last week, Novartis(NVS) completed its spinoff of Alcon(ALC). Less than a decade ago, Novartis had purchased Alcon from Nestle(NSRGY), but new leadership decided to reverse the transaction. In an article this weekend, Barron’s suggests that there is more than meets the eye to Alcon. Barron’s notes that, on the surface, Alcon looks expensive. For now, Wall Street is… Read More »
What the VF(VFC)? The clothing conglomerate moved closer to completing the spinoff of its denim business as Kontoor Brands recently with the filing of a Form 10. Kontoor will comprise the Wrangler®, Lee® and Rock & Republic® brands, and the VF Outlet business. Kontoor stock is expected to trade under the KTB ticker symbol. The spinoff, which is on track to be completed… Read More »
American Eagle Outfitters (AEO) isn’t considering a spinoff of Aerie, its lingerie brand…at least right now. At least that is the message from AEO’s CFO Bob Madore who told Bloomberg that a spin may come, ‘but not today’. The lingerie brand has been grabbing market share and growing at a rapid clip. With Aerie’s Q4 comps at +23%… Read More »
A cross-country flight transporting a motley collection of violent and dangerous criminals? What could possibly go wrong? Nothing, until they take over the plane mid-air. Good thing Nicholas Cage is there. Oh, wait, that’s Con Air. Really, nothing to do with this morning’s completion of the Alcon (ALC) spinoff from Novartis (NVS), but it’s making us giggle. Go… Read More »
Much ink was spilled, on these pages and countless others, discussing Yahoo’s plan to spinoff its stakes in Alibaba(BABA) and Yahoo! Japan as an independent company. For much of 2015, the company planned to spin off this stake, together with a Yahoo’s small business unit as Aabaco Holdings. The small business unit was included to maintain the tax… Read More »
AP Moller Maersk(AMKBY) is out of the drilling business and its transformation into a pure transportation company is almost complete. On April 2nd, shareholders approved the spinoff (sorry, demerger) of The Drilling Company of 1972. The first day of trading in Copenhagen was yesterday, but as we noted in an earlier piece the schedule makes it seem like Maersk… Read More »
Everyone was focused on DowDupont’s (DWDP) mega Dow (DOW) spinoff yesterday, but it wasn’t the only show in town. Ironwood Pharmaceuticals (IRWD) also completed the spinoff of Cyclerion Therapeutics (CYCN) that same day. As we previously discussed, Ironwood shareholders should have received one share of Cyclerion stock for every ten shares of IRWD stock owned. That ratio may… Read More »