After ceasing buyout discussions with Ariad Pharmaceuticals (ARIA) due to disagreements over price, Baxalta (BXLT) is apparently still in play. The WSJ recently reported that Shire (SHPG) is still trying to consummate a deal with the drug company after having its hostile, all-stock offer rejected earlier this summer. As a quick refresher, Shire surprisingly unveiled an offer of 0.1687 ADRs… Read More »
The Dolan family has spent the better part of the decade spinning off assets. The dynasty behind Cablevision(CVC) spun off the Madison Square Garden Company(MSG) in 2010, followed by AMC Networks(AMCX) in 2011. Now, all three companies are in the midst of radical transformations. Early this morning, Cablevision announced that it would be acquired by French telecom Altice… Read More »
SPX Corporation (SPW) is currently in the process of spinning off its flow products into the cleverly titled SPX FLOW. The board has approved the transaction and on September 26th, shareholders as of September 16th with receive one share of the new company for every SPW share owned. SPX FLOW is expected to generate ~$2.5b of revenue and… Read More »
Capital Southwest Corporation(CSWC), a Business Development Company, announced late last year that it would spin off its industrial products, coatings, sealants and adhesives and specialty chemicals businesses into a separate, publicly traded company. Yesterday, the company announced that its Board of Directors had approved the spinoff of CSW Industrials. The new company will trade under the ticker CSWI. Shareholders… Read More »
After months of putting on a brave face in the face of mounting IRS resistance to its proposed spinoff of Alibaba(BABA) shares as Aabaco Holdings, Yahoo(YHOO) was served another setback last week. In a filing late today, the comapny revealed that the IRS had declined to issue a ruling on the taxable status of the transaction. On January 27,… Read More »
A few links to settle back in after the long Labor Day weekend: Spinoffs are all the rage and conglomerates are dropping like flies. While GE (GE) and others are currently slimming down, the WSJ notes that Honeywell (HON) is the rare outperforming conglomerate that is actually being cheered for its diversified position. Whether that remains the case… Read More »
Cree(CREE), a leader in LED lighting also has a North Carolina-based Power & RF business which has no overlap with the core business. In May, the company announced that it planned an IPO of the Power & RF business, and that it had filed with the SEC towards that goal. The company plans to sell a minority stake… Read More »
Verizon(VZ) is a proto-spinoff. At its core rest two of the original baby bells, Bell Atlantic and NYNEX, although it didn’t take on the Verizon moniker until after its merger with GTE(as part of that merger, GTE spun off Genuity). Verizon later purchased other spinoff related companies such as Alltel, which had spun off its wireline business into… Read More »
How quickly things change. Last week, word was Baxter (BAX) spinoff Baxalta (BXLT) was in talks to acquire oncology focused Ariad Pharmaceuticals (ARIA). The rumored $2b price tag sent Ariad shares soaring, but alas, today shares are crashing on word the deal has been called off. According to Bloomberg, there were a couple of pretty big issues that emerged:… Read More »
One the most anticipated spinoffs during the Summer of Spin was eBay’s (EBAY) spinoff of PayPal (PYPL). Both activists (Carl Icahn) and tech kings (Elon Musk) urged the company to make the move, but it didn’t help the initial performance as the stock took a slight dive in its first few days of trading. A few days of… Read More »
Just two months after its spinoff from Baxter International(BAX), as it continues to reject acquisition interest from Shire(SHPG), Baxalta(BXLT) is in talks to acquire Ariad Pharmaceuticals(ARIA). Ariad jumped 42% on the news last Friday, valuing the oncology company at nearly $2 billion. What is driving this potential acquisition? Is it the “Promise of the Baxalta Spark“? Perhaps it’s… Read More »
With Darden (DRI) announcing a real estate spinoff, analysts and investors are flocking to find other targets which could benefit from monetizing real estate assets through a REIT conversion. One reason REITs are attractive is that they tend to trade at higher multiples than other sectors so in theory, a separation ‘unlocks’ value by creating a higher sum… Read More »
Abbott Labs(ABT), which spun off AbbVie(ABBV) in one of the largest spinoffs in recent years, is preparing to make a $25 billion bid for St. Jude Medical(STJ) according to a report in the Financial Times. Abbott and St Jude, which is based in St Paul, Minnesota, already have a strong alliance in the field of cardiovascular devices, and… Read More »
Starboard Fund, the ‘Tom Brady of activists‘, successfully campaigned for a spinoff of MeadWestvaco’s specialty chemical group earlier this year. The spin got delayed a bit as the company merged with RockTenn in order to create a consumer and corrugated packaging giant named WestRock (WRK). Now that the merger has closed, the spinoff is heating up again and… Read More »
A few links for another glorious summer Friday: The activist investors at CDK Global (CDK) have a new plan to keep the star spinoff stock rising: find a buyer. The company is apparently working with Morgan Stanley to sell itself and private equity firms are apparently the target audience. That is somewhat surprising because a PE deal for… Read More »