Rejoice, oh lovers of oddly named companies. Prepare, chronic mis-pronouncers. The North American Grocery business of the crafty Kraft(KFT) will be spun off and trade under the new ticker KRFT. The stub will be renamed Mondelez(this rhymes with Oh Puhhleez) International, despite our valiant efforts to stop this awful name, and trade under the ticker MDLZ. Speaking of… Read More »
Remember dial up internet? Remember Juno and NetZero? United Online(UNTD) owns both brands and continues to generate cash flow from its legacy dial up business, though it continues to decline. The company has used this cash to pay a nearly 10% dividend, and to diversify its revenue stream by acquiring other businesses. Yesterday, United decided it was time… Read More »
It can be tough to stay on top of spinoff related news due to the time lag between announcement and completion. Months can often pass before new, useful information is released leading to lost interest. That must explain the lack of reader feedback on Egypt’s Orascom Construction Industries (ORSCY) planned separation of its construction business from its fertilizer… Read More »
Tough times for Genworth Financial (GNW) shareholders. The name was one of the worst performing stocks in Q2 and unfortunately Q3 might not be much better. The name was punished again, down over 9% at some points, after several disappointing comments made by acting CEO Martin Klein during Tuesday’s Q2 earnings call. Mr. Klein noted that a spinoff… Read More »
It’s been a few quarters since Orchard Supply Hardware(OSH) was spun off from Sears Holdings(SHLD). The stock continues to trade at similar levels to where we felt it was a reasonable buy soon after its spinoff. Yesterday, the company issued a brief press release which contained three critical pieces of information. Comparable Store Sales were up 0.9% –… Read More »
While releasing its Q2 earnings, Valero Energy (VLO) also dropped news of its plans to separate retail unit. While Valero is best known for its refining business, the company also operates over 6,000 retail and branded wholesale outlets. According to CapIQ, for the FYE 2011 the retail segment generated $11.7b of revenues and $381m of EBIT, small potatoes… Read More »
That was quick. Weeks after its spinoff from Hilshire Brands(HSH), the former Sara Lee, DE Master Blenders 1753(DEMBF) announced today that it had found accounting irregularities, and would be restating results. These are definitely words no investor wants to hear, and they tend to get bigger the more they get looked at. Here is how the company describes… Read More »
Spinoffs are supposed to be a clean break; an opportunity for two new companies to seek their own fortunes. But, as David Nicklaus points out at the St. Louis Post Dispatch, when things go sour with the child, the former parent may still be on the hook. He writes about Patriot Coal (PCXCQ) which was spun off from… Read More »
Cash America(CSH) has withdrawn plans to conduct an IPO of the majority of its Enova International unit. The company had announced last September that it intended to offer a majority of the unit to investors, but retain a 35% to 49% stake. Cash America shareholders would not have received shares in the new firm. Cash America would have… Read More »
It’s been well over a year since we mentioned that Siemens(SI) was looking to divest its Osram lighting unit. Now, 16 months later, unable to get the price it wanted, or to conduct an IPO, the company plans to spin off the unit to shareholders. On its recent conference call, Siemens CEO Peter Loscher announced the plans: As… Read More »
It’s always sad for us here when a spinoff is cancelled, but those situations are often worth filing away as there is always the chance that the situation gets revived. The market could be better, certain hurdles cleared, you never know. The latest example is IDT’s (IDT) recent announcement that it is resurrecting its plans to spin off its patent… Read More »
As part of its recent spinoff of Engility(EGL), L-3 Communications(LLL) received $325 million in cash which it will use to retire $250 million in debt and repurchase $75 million in stock. Despite this balance sheet improvement, both S&P and Fitch left the company’s ratings unchanged. From S&P: Standard & Poor’s Ratings Services said today that its ratings and… Read More »
Earlier this week, we reported on rumors that VMWare(VMW) and EMC(EMC) were planning to spin off their cloud assets into a new company. Today, CRN reports that the company called the rumors ‘unfounded’ in an internal memo. In an internal memo Tuesday, VMware instructed its corps of global spokespeople to address questions about the rumored spin-offs by answering… Read More »
Defense contractor L-3 Communications(LLL) completed its spinoff of Engility Holdings(EGL) yesterday. L-3 shareholders as of July 16 received 1 share of Engility for every 6 shares of L-3 that they held. In its last day of when issued trading, Engility closed at $17.83, giving the company a market cap of just under $300 million. L-3 closed at $69.79… Read More »
Heinz(HNZ) is certainly one stock that needs no introduction as it is likely to be in your pantry, if not your portfolio. On CNBC’s Fast Money, host Jim Cramer told viewers that Heinz should spin off its frozen food business: “It’s time for Heinz to spin-off its frozen division as a separate company or find someone else… Read More »