Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, June 14, 2013

Article Excerpt

PFIZER INC., $29.09, New York symbol PFE, sold 19.8% of its animal-health subsidiary to the public in February 2013. This business, ZOETIS INC., $30.80, New York symbol ZTS, makes drugs and vaccines for livestock and pets. Next week, Pfizer plans to hand out its remaining 80.2% of Zoetis to its own shareholders. Investors will be able to swap all or part of their Pfizer shares for Zoetis stock. Pfizer shareholders can tender some or all of their stock for Zoetis shares. Pfizer has designed the offer so that its investors get Zoetis shares at a 7% discount. For each $100 worth of Pfizer shares tendered, holders could receive a maximum of $107.52 worth of Zoetis. Pfizer has also structured the exchange so that participating investors will not have to pay capital gains taxes until they sell their new shares. Zoetis’s stock has stayed in a narrow range since it became a public company. It also reported earnings of $179 million in the three…