Barry Sternlicht of Starwood Capital has a long history of real estate success. Nearly two decades ago, he built Starwood Hotels(HOT) from scratch into one of the world’s largest hotel companies. More recently, as Chairman and CEO of Starwood Propert Trust(STWD) he has assembled the country’s largest commercial mortgage REIT. The firm has financed some of the most… Read More »
Canadian Tire Corporation(CTC-A) announced plans yesterday to spin off its real estate as a REIT. The company anticipates selling 10-20% of the new REIT in an IPO this fall, and retaining the rest. The new REIT will have approximately 18 million square feet of real estate valued at approximately C$3.5 billion. The company has no announced plans to… Read More »
Spinoff talk has surrounded Pfizer (PFE) for some time now following a business unit review a couple of years ago. That ultimately led to the sale of its nutritional unit and the successful IPO of ~20% of its animal health business, Zoetis (ZTS) earlier this year. Investors have been hoping for something bigger though, especially following the successful… Read More »
It’s official folks. Valero (VLO) completed the spinoff of CST Brands (CST) and the company began trading today as an independent entity on the NYSE. The new company operates in the US & Canada as an independent retailer of fuel and convenience merchandise while Valero is now a “more-focused refining, wholesale marketing, and alternative fuels company.” The Motley Fool’s Jim Royal is… Read More »
Well that didn’t take long to get back on track. After shareholders overwhelmingly approved Siemens’ (SI) Osram lighting spinoff, the transaction was quickly derailed by a lawsuit. A small group of shareholders claimed the meeting was invalid due to acoustics issues, a charge which Siemens considered ‘without merit’. A Munich judge agreed with the company and tossed the complaint stating the… Read More »
News of Nelson Peltz’s Trian Fund Management ridding itself of all Kraft related positions turned out to be off…very off. In an amended Q4 13F filing released last week, the hedge fund revealed a large stake of over 19 million shares (a bit more than $600m worth) in Kraft’s international snacks spinoff Mondelez International (MDLZ). There was still… Read More »
When discussing spinoffs, analysts often toss in a comment about how the new slimmed and focused companies will be more attractive acquisition targets. After all, who doesn’t like the idea of a relatively quick exit with a nice premium? Sometimes they are right though and the most recent one to be acquired is Sara Lee spin DE Master… Read More »
In 2007, it was all smiles as Peabody Energy(BTU) spun off Patriot Coal(PCXCQ). But loaded with debt and retiree health and pension obligations, Patriot filed for bankruptcy in July 2012. Now, Patriot and its creditors, led by the United Mine Workers of America, are investigating whether the spinoff was a fraudulent transfer which might give Peabody back the… Read More »
In 2006, Sara Lee, now Hilshire Farm(HSH), loaded up HanesBrands(HBI) with lots of debt and spun it off. Seven years later, after weathering a financial crisis, steadily paying down debt and improving profitability, the company has announced it will pay a quarterly dividend of $.20, beginning in June. The dividend will be paid on June 3, to shareholders… Read More »
We love all our posts equally, really we do. It’s just that some posts are more equal than others. We take a guilty pleasure in writing up nanocap stocks that have decided to pursue a spinoff. While we have seen many nanocaps with value(and we own significant stakes in several), we have yet to see a spinoff in… Read More »
Thanks to several alert readers who point out that, while we were asleep at the wheel, Valero(VLO) announced the final details of its CST Brands spinoff. It was just last week that we reported the company was two steps away. Those steps are now complete. Valero issued a press release on April 4, confirming that it had received… Read More »
Investors who have long been anticipating Valero’s(VLO) spinoff of retail division CST Brands(CST) won’t have to wait much longer. According to Convenience Store News, Valero Chief Financial Officer Mike Ciskowski said at a recent luncheon that the company was just waiting for an IRS ruling that the transaction would be tax free to shareholders, and for final Board… Read More »
In December, Harvard Bioscience(HBIO) filed for an IPO of Harvard Apparatus Regenerative Technologies(HART). Last week, the company announced that the tax free spinoff was approved by the IRS, and that an IPO of 17% of the company would be conducted in early April at an expected price of $10-$12 per share. The company will spin off the remaining… Read More »
A quarter has passed since its spinoff from Elan(ELN), and Prothena(PRTA) continues to lumber forward with its development as an independent company. Prothena issued two announcements last week. In the first, it announced the expansion of its management team, with the appointments of Dr. Martin Koller as Chief Medical Officer, and Tran Nguyen as Chief Financial Officer. “Marty… Read More »
In 2006, Verizon(VZ), spun off its declining directory business as Idearc, saddled with billions in debt. Just 28 months later, the company filed for bankruptcy, Idearc has since restructured and reemerged as SuperMedia(SPMD), but trustees for the debtors are continuing their fight against Verizon for the repayment of debt. On Friday, the trustee for the creditors filed suit,… Read More »