New & upcoming spinoff opportunities

Article Excerpt

HEWLETT-PACKARD ENTERPRISE $13 (New York symbol HPE; Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $22.1 billion; Takeover Target Rating: Lowest; Dividend yield: 1.9%; TSINetwork Rating: Average; www.hpe.com) has merged its Enterprise Services business with Computer Sciences Corp. (New York symbol CSC). Enterprise Services supplied 36% of HP Enterprise’s total revenue; the operation helps corporate clients manage data centres and computer networks. HP Enterprise shareholders got 0.086 of a share in the combined company, DXC Technology (New York symbol DXC), for each HPE share they held. As well, Computer Sciences paid HP Enterprise $3.0 billion in cash. The company will use half of that to pay down its debt of $14.5 billion. That’s a high 66% of its market cap. HP Enterprise faces strong competition from cloudcomputing providers Amazon and Microsoft. It’s a hold. DXC will probably make little progress while it integrates the new operations. It’s also a hold. TEGNA INC. $12 (New York symbol TGNA; Consumer sector: Shares outstanding:…