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 »
Last January, Sears Holdings(SHLD), controlled by Eddie Lampert, spun off Orchard Supply Hardware(OSH). At the time, we were bullish on Orchard. We were wrong. Unfortunately, while the stock has plummeted, we held onto our small stake. Lampert, however has been smarter, as he has cut his stake in half over the past year. Orchard has struggled to maintain… Read More »
Another day, another story about a large shareholder pushing for a breakup. The latest target is pork company Smithfield Foods (SFD) which received a letter from one of its larger shareholders, Continental Grains, urging the company to hire an outside adviser and to consider ‘strategic changes’ including the possible breakup into three separate companies. Continental argues that since… Read More »
A quick update on a recent spinoff. Leucadia (LUK) completed the spinoff of Crimson Wine Group (OTC:CWGL) a few weeks ago and the new company has jumped around a bit as an independent company. A lot of people were down on the company and many of the comments on our earlier articles pointed to the company’s poor recent earnings, expected… Read More »
Earlier this year, Siemens(SI) shareholders overwhelmingly approved the spinoff of 80.5% of Osram at the company’s annual meeting. Or did they? Though it was reported that 98% of shareholders who cast votes were in favor of the spin off, a group of shareholders has now stepped forward to challenge the vote. While this lawsuit is pending, the company… Read More »
We wrote previously about the planned spinoff by Leucadia(LUK) of Crimson Wine Group(CWGL). There was much discussion and speculation as Lucadia’s managment are among the most successful investors of the last few decades, this was their personal project being spun off as a result of the merger with Jefferies(JEF), the distribution ratio of 1 share of CWGL for… Read More »
Illinois Tool Works (ITW) has been going through quite the transformation over the past year or so after being egged on by activist investor Ralph Whitworth. The company sold a 51% stake in its decorative surfaces division last year and last week it announced that it was ‘exploring strategic alternatives’ for its industrial packing unit. This seems to fit… Read More »