It’s been nearly 6 months since Ralcorp(RAH) announced plans to spin off Post Holdings and not much has changed. The interest that had been expressed by Conagra(CAG) never materialized into a transaction as Ralcorp management continued to reject buyout offers. Today, the company took the mildly unusual step of issuing a press release noting that it has amended… Read More »
We’ve previously discussed the Conoco Phillips(COP) split here and here. James Shell posts at Seeking Alpha his case for buying Conoco Phillips this week. Shell projects that the companies trade at a 5% discount as a result of being combined. Is that enough to justify the split? Does the trend to dismantle vertically integrated oil companies make sense,… Read More »
The largest public company in Egypt will soon be much smaller. Orsacom Construction Industries(ORSCY) will spin off its construction business to shareholders, retaining its fertilizer business.Nassaf Sawaris, the company’s chairman and CEO explained It has been apparent to us, that there is absolutely no rationale to justify the relationship between the fertiliser business [which exports to Europe, North… Read More »
A recent report on Sears Holdings(SHLD) by Morningstar analyst Paul Swinand lowers their fair value estimate for Sears by $10 per share due to the Orchard Supply(OSH) spinoff. Given the distribution ratio of 1 share of Orchard Supply for approximately every 22 of Sears, and Sears’ 80% ownership in Orchard Supply, this would seem to imply a per… Read More »
In another sign that spinoffs are the latest corporate fad, Arrayit Corporation(ARYC), a company with a market cap of just $2.4 million, has decided to spin off and distribute to shareholders its 78.18% stake in Arrayit Diagnostics. The company, which became public through a reverse merger several years ago, apparently feels that its vast and diverse business interests… Read More »
I know little more than nothing about Hong Kong stocks, but wanted to share the announcement that Swire Pacific will distribute 7 shares of Swire Properties for each 10 “A” shares or 50 “B” shares. The distribution will take place on January 18, to holders as of January 5. Do any of the more cosmopolitan folk out there… Read More »
TripAdvisor(TRIP) began trading as an independent company today after its spinoff from Expedia(EXPE). Later, founder and CEO Stephen Kaufer, granted a fascinating interview to Chris Dixon of TechCrunchspeaking about his experience as founder of TripAdvisor, and about the company’s evolution and history. The video is a must-watch for anyone considering investing in the company. Disclosure: The author holds… Read More »
On the heels of last year’s spinoff of Howard Hughes Corp(HHC) which we wrote about here and here, General Growth Properties(GGP) approved plans today to spin off Rouse Properties on January 12, 2012 to shareholders as of December 30, 2011. The spinoff, which will be treated as a taxable dividend, is expected to trade as a REIT under… Read More »
In a transaction we previously discussed here, Expedia(EXPE) will complete the spinoff of TripAdvisor(TRIP) on or around December 20. Immediately prior to the spin, Expedia will execute a 1 for 2 reverse split, and on December 20, TripAdvisor will be added to the S&P 500, replacing Tellabs(TLAB). Expedia, itself spun off several years ago by Barry Diller’s IAC(IAC),… Read More »
Whopper Investments asks the question we’ve been puzzling over: What is the purpose of the preferred stock being issued to Sears(SHLD) shareholders as part of the Orchard Supply(OSH) spinoff? We’ve previously written in general terms about the spinoff here, but haven’t much discussed the prospects of the securities that will be distributed. Sears has its own issues which… Read More »
Much like Halloween, the end of the year is also shaping up to be an extremely busy period for spinoffs. The latest to join the party is Sears Holding (SHLD) whose board of directors approved the spin offof Orchard Supply Hardware Stores earlier this week. The spinoff will take place on December 30 to shareholders as of today,… Read More »
After successfully completing an IPO this past July, Sunoco (SUN) announced that it is ready to move on to the second stage of its planned spinoff of SunCoke Energy (SXC). On January 17th, 2012 Sunoco will issue a special stock dividend distributing its remaining ~81% stake in SunCoke to shareholders as of January 5th. SUN shareholders will receive… Read More »
New Year’s Eve is one of those ‘big events’ that rarely lives up to its hype and often ends up pretty anti-climactic. Doesn’t bode well for this ensemble flick(actually, I am sure it will suck for a host of other reasons). The board of directors at Williams Companies (WMB) believes they have found the solution for a great… Read More »
Alexander & Baldwin(ALEX) announced plans this morningto spin off Matson, its ocean transportation and domestic logistics company. Alexander & Baldwin, which has owned Matson since 1969, is the 4th largest private landowner in Hawaii, where it owns 88,000 acres. A & B is the largest farmer in the state, a developer of condos and other projects, and owns… Read More »
Another day, another spin goes by the wayside. The big news yesterday was the AMR Corporation (AMR and parent corporation of American Airlines) filing for Chapter 11 reorganization in what will be the second largest airline bankruptcy since 1980. A lot has been written about this situation already, but it is worth mentioning here because the company’s planned… Read More »