Following in the time honored tradition of Yellow Pages locksmiths, Yahoo(YHOO) has opted to name its upcoming spinoff Aabaco Holdings. Perhaps if they stick enough A’s in the name, they can get tax free status for the spin. Though no uplifting corporate message was given for the name, which presumably rhymes with tobacco, it appears to be a… Read More »
The drama surrounding Yahoo(YHOO)’s proposed spinoff of its Alibaba(BABA) stake continues. Though the company has said it is pushing forward and is optimistic, Barron’s reports that Morgan Stanley feels a 0% probability of the deal is priced in at the current stock price. The sentiment on the stock is now as if they’ll never make the spin happen,… Read More »
For the past month, Yahoo (YHOO) has been awash with uncertainty over saber rattling by the IRS that calls the tax-free nature of the spinoff of its Alibaba(BABA) stake into question. Last week, Marissa Mayer downplayed concerns. This week, Yahoo General Counsel Ron Bell tried to do the same. Yahoo! Inc. is working with tax officials to complete… Read More »
On May 19th, Yahoo’s (YHOO) stock plunged at the close after word leaked that the IRS was reviewing its rules regarding spinoffs. This was big news because Yahoo, after months of prodding by numerous activists, is in the process of spinning off its $30+b stake in Alibaba (BABA). A spinoff will help the company avoid a massive tax bill estimated… Read More »
Yesterday, Yahoo(YHOO) shares plunged on word that the IRS was examining treatment of asset-rich spinoffs. In a statement emailed to the Wall Street Journal, a Yahoo spokesperson stated that they expect no impact to the spinoff that is planned. In an emailed statement, a Yahoo spokeswoman said that because the company filed its request with the IRS earlier… Read More »
Some activist funds like to work behind the scenes and then there are the others which seem to be in the news almost every day. A day after making waves at Yahoo (YHOO), Jeffrey Smith’s Starboard Value fund was back in the news after long time target MeadWestvaco (MWV) announced plans to spin off its specialty chemical business… Read More »
In separate filings today, Dan Loeb, fresh off his successful fight for Yahoo(YHOO) board seats, revealed that he had increased his Sara Lee(SLE) stake, and John Paulson announced a new stake in the disappearing conglomerate. Sara Lee will be paying a special dividend of $3 per share and spinning off its coffee and tea business by June 30.… Read More »