On a recent edition of his CNBC show, Mad Money, Jim Cramer, who, it seems, has an opinion on everything, opined on the prospects for ConocoPhillips(COP) and its new progeny, Phillips 66(PSX). Mr. Cramer compared the spin to last year’s similar transaction involving Marathon Oil(MRO), briefly analyzed the two parts, and concluded that the gains have already been… Read More »
Dole Food Co(DOLE) may be a household name, but the company has had more success selling its pineapples than its stock. The venerable company announced this week that it has begun a strategic review which may result in one or more spin offs. Controlled by 88 year old billionaire Chairman David Murdock(he plans to live to 125) who… Read More »
After years of struggling and shedding lousy assets via ‘bankruptcy’ or negotiated deals, there really hasn’t been any spinoff talk from the US automotive industry. It appears that is also the case across the pond as Daimler AG (DDAIF) CFO Bodo Uebber said in a recent roundtable discussion that the company is not considering a spinoff of its truck… Read More »
We have recently noted that activist investors have notched a bunch of wins recently. For example, Jana Partners (involved with Marathon and McGraw-Hill) recently cleaned up with a well-timed investment into Barnes & Noble (BKS) that led to quite the ‘victory lap‘ for managing partner Barry Rosenstein who said that “there is no point in fighting us,” and… Read More »
We’ve written here previously about the possibility of embattled bookseller Barnes & Noble(BKS) spinning off its Nook business. We’ve written elsewhere about the turnaround at Microsoft(MSFT). Today, both stories collide in an explosive way. The two companies will create a joint venture to which Barnes & Noble will contribute its Digital and College businesses, and to which Microsoft… Read More »
In a pattern we have seen over and over, just months after simplifying its business by spinning off Suncoke(SXC), Sunoco(SUN) will be purchased by Energy Transfer Partners(ETP) in a deal announced this morning. This combination will create one of the largest and most diversified energy partnerships in the country by expanding ETP’s geographic footprint and strengthening its presence… Read More »
MeadWestvaco(MWV) announced this morning that shareholders as of April 24, will receive .32986547 shares of ACCO Brands(ABD) on May 1, following the spinoff of the company’s Consumer & Office Products Business, and its subsequent merger with ACCO. Concurrent with the merger, ACCO will change its ticker from ABD to ACCO. The transaction is a “Reverse Morris Trust”, which… Read More »
L-3 Communications(LLL) affirmed in today’s first quarter earnings release that it is moving forward with its plan to spin off Engility. With our filing of the Engility initial registration statement, the spin-off of those businesses should occur around mid-year, and we continue to believe that this will unlock opportunity and value for both companies. The performance of Engility… Read More »
After a little drama, Galena Biopharma (GALE) will pay out a dividend of one share of Rxi Pharmaceutical for every share of GALE owned. The dividend is being paid out at the close of business today to shareholders as of the April 23rd record date. The new company will trade OTC under the ticker RXII in the coming… Read More »
It’s party time! Well…almost there as the board of directors of Carrols Restaurant Group (TAST) recently approved the spinoff of the Fiesta Restaurant Group. You may not realize this, but Carrols is the country’s largest Burger King franchisee and post-transaction the parent will retain its Burger King franchise business. The new company, Fiesta, will operate the company’s two… Read More »
After the close of business on April 30, Phillips 66(PSX) will be distributed to shareholders of ConocoPhillips(COP). Phillips 66 will receive refining, marketing, midstream and chemicals businesses from the integrated oil company. ConocoPhillips shareholders will receive 1 share of the new Phillips66 for every 2 shares they own. At the same time, the new Phillips 66 will join… Read More »
Despite previous speculation that the company might sell, rather than spin, its Education business, in today’s earnings announcement, McGraw-Hill(MHP), provided an update on the spinoff plan, and stated that it “remains on track to establish two separate industry leaders by year-end.” The company “has received a ruling from the Internal Revenue Service agreeing to the tax-free status for… Read More »
In a famous Saturday Night Live sketch, a young Steve Martin promised that “You too can be a millionaire, and not pay taxes.” While the advice he proceeded to give was ineffective, using a reverse Morris Trust, your favorite company can sell off a division and not pay taxes. How you ask? Simple. First, borrow as much debt… Read More »
The big news out of South America this week is that on Monday, the government of Argentina pulled a Chavez and nationalized YPF, its largest oil and gas company. YPF had been majority owned by Spain’s Repsol (look at that Euro clout). The Argentinian government appears increasingly less investor friendly and now it looks like the energy industry,… Read More »
In an earlier post, we noted that Galena Biopharma’s (GALE) planned spinoff of Rxi Pharmaceutical was still awaiting approval and that the actual distribution date had yet to be determined despite a date of record being established. You can scratch that date off your calendar as the company filed an 8-K on April 10th announcing that it had… Read More »