spinoffs
A spinoff takes place when a company decides to get rid of a portion of its asset base, possibly because it wants to focus its activities elsewhere, but is unable to sell the assets for a price that it feels reflects their value. Instead, the parent company sets the assets up as a separate company, then hands out shares in that publicly listed firm to its current investors.
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HONEYWELL INTERNATIONAL INC. $146 (New York symbol HON; Manufacturing Sector; Shares outstanding: 761.8 million; Market cap: $111.2 billion; Takeover Target Rating: Medium; Dividend yield: 1.6%; TSINetwork Rating: Average; www.honeywell.com) is a diversified technology firm operating in four main segments: Aerospace (38% of sales); Home and Building (27%); Performance Materials (24%); and Safety and Productivity (11%).
The company is the target of several activist investors, including Dan Loeb’s Third Point LLC hedge fund....
The company is the target of several activist investors, including Dan Loeb’s Third Point LLC hedge fund....
FIRSTSERVICE CORP. $84.97 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www. firstservice.com; Shares outstanding: 34.6 million; Market cap: $3.1 billion; Dividend yield: 0.7%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015, and handed out shares to its investors.
Since the spinoff, FirstService has carried on with residential property management and its property improvement services for commercial and residential real estate.
In the second quarter, ended September 30, 2017, revenue rose 11.6%, to $456.5 million from $409.1 million a year earlier (all figures except share price in U.S....
Since the spinoff, FirstService has carried on with residential property management and its property improvement services for commercial and residential real estate.
In the second quarter, ended September 30, 2017, revenue rose 11.6%, to $456.5 million from $409.1 million a year earlier (all figures except share price in U.S....
What is a spinoff and why would you want to own one? Studies show that spinoffs often outperform comparable stocks
Our Takeover Target Rating considers a range of factors to determine the chances of a spinoff company attracting takeover interest in the short to medium term:
We look for a profitable spinoff with low debt and with hidden assets. As well, spinoffs with no major shareholder and facing little regulatory or anti-trust contraints have strong appeal.
Does the spinoff have an affordable market value, meaning it’s a manageble purchase for a major industry competitor? Spinoffs with top-quality, but underperforming assets also attract takeover interest....
We look for a profitable spinoff with low debt and with hidden assets. As well, spinoffs with no major shareholder and facing little regulatory or anti-trust contraints have strong appeal.
Does the spinoff have an affordable market value, meaning it’s a manageble purchase for a major industry competitor? Spinoffs with top-quality, but underperforming assets also attract takeover interest....
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Spinoffs involve a lot of work and legal fees....
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Spinoffs involve a lot of work and legal fees....
MARATHON PETROLEUM $57 (New York symbol MPC; Resources sector; Shares outstanding: 506.3 million; Market cap: $28.9 billion; Takeover Target Rating: Lowest; Dividend yield: 2.8%; TSINetwork Rating: Average; www. marathonpetroleum.com) is a U.S. petroleum refining, marketing and transportation company based in Findlay, Ohio.
In November 2016, activist investor Elliott Management acquired a 4% stake in Marathon Petroleum and made several demands....
In November 2016, activist investor Elliott Management acquired a 4% stake in Marathon Petroleum and made several demands....
Stock carveouts are also known as split-off IPOs or partial spinoffs. They’re a type of corporate reorganization where a firm uses an initial public offering to sell partial or minority interest in one of its subsidiary. It retains the rest—typically about an 80% stake.
By listing shares in the new company, the parent is able to assess the true market value of its subsidiary....
By listing shares in the new company, the parent is able to assess the true market value of its subsidiary....
Activist investors have a long history of pressuring large firms to boost shareholder value by spinning off businesses and aggressively cutting costs.
For example, Nelson Peltz, through his firm Trian Partners, has now targeted two of our long-term recommendations: General Electric and Procter & Gamble....
For example, Nelson Peltz, through his firm Trian Partners, has now targeted two of our long-term recommendations: General Electric and Procter & Gamble....
Study after study has shown that after an adjustment period of a few months, spinoffs tend to outperform groups of comparable stocks for several years.
One reason for the gap is that spinoffs often attract takeover bids. Here’s a look at some of the key factors that enhance a spinoff’s takeover appeal....
One reason for the gap is that spinoffs often attract takeover bids. Here’s a look at some of the key factors that enhance a spinoff’s takeover appeal....
The first issue of Spinoffs, Takeovers & Special Situations will be sent to you on September 15, 2017
Congratulations and thank you for your new purchase of Spinoffs, Takeovers & Special Situations.You are among the first to become a subscriber to this one-of-a-kind investment advisory....
Congratulations and thank you for your new purchase of Spinoffs, Takeovers & Special Situations.You are among the first to become a subscriber to this one-of-a-kind investment advisory....