Orascom Construction Industries To Split Fertilizer And Construction Businesses

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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 »

Is Orchard Supply Worth $10 per Sears Share? Morningstar Seems To Think So

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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 »

Newly Spun TripAdvisor’s CEO Stephen Kaufer on Founder Stories

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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 »

General Growth Properties Rouses Rouse From Its Slumber

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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 »

TripAdvisor Flies Free From Expedia This Week, Joins S&P 500

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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 »

Should You Bite The Preferred Apple From Orchard?

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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 »

Matson To Sail Free From Alexander & Baldwin

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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 »

AMR Bankruptcy Clips Eagle’s Wings

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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 »

Marriott Vacations Worldwide No Longer Sharing Time With Marriott International

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  Marriott Vacations Worldwide(VAC) which we discussed previously, has now completed its spinoff.  Timeshares are a challenging industry; they sell a product that many buyers seem unhappy with. Goldman Sachs started the company with a Neutral rating, and in the current economic environment is likely to be challenging for the new company. The former parent, Marriott International(MAR), has… Read More »

Medtronic And Others Think Twice Before Spinning

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Spinoffs take a lot of time. It really isn’t so surprising considering the plethora of regulatory and logistical issues that arise from splitting up a business. While often overlooked as one time charges, companies spend millions upon millions planning and executing these transactions. As a result, at least 6 months usually pass between the date of announcement and… Read More »