Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, March 15, 2019

Article Excerpt

ZAYO GROUP HOLDINGS INC., $27.89, symbol ZAYO on New York, operates a fibre network across North America and Europe that stretches more than 209,215 kilometres. It is the largest independent fibre owner in North America. Zayo Group went public in 2014 at $19 a share. On November 7, 2018, the company announced plans to separate into two publicly traded companies. The first would own the fibre infrastructure, while the second company would provide connectivity services to large businesses. The split was expected to take place in late 2019. However, by mid-February 2019, Zayo changed had reversed its decision about splitting into two separate, publicly traded companies. Meanwhile, over the past few months, the company has rejected acquisition offers, including from a private equity consortium comprising Blackstone Group LP, Stonepeak Infrastructure Partners LP, KKR & Co Inc., I Squared Capital, Charlesbank Capital Partners and GTCR Ltd. All the uncertainty—and the company’s potential takeover value—has attracted the interest of activist hedge fund Starboard Value LP. That…

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