Spin-Off

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Spin-Off

The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

When a spin-off occurs, the shareholders of the parent corporation are not required to surrender any of their parent corporation stock in exchange for the subsidiary's stock.

In the event that the distribution of stock to the parent corporation's shareholders amounts to a dividend, the distribution can be taxed pursuant to provisions of Income Tax statutes.

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TSR's management has not only been managing money, investing in Spinoffs globally for the past decades, but it also advises many of the world's most notable value fund managers with its investment research on how to recognize where the value is hidden within any corporate break-up they've under coverage.
Warganegara, 2003, "Using Spinoffs to Reduce Capital Mis-Allocations," Review of Quantitative Finance and Accounting 20, 35-47.
The spinoff positions Travelers Property Casualty to participate independently in the accelerating consolidation of the insurance industry, especially after the events of Sept.
The data show $11 billion in spinoff activity in 1988, a level from which spinoffs declined precipitously into the early 1990s (along with other forms of dealmaking) and not surpassed again until 1993, when the current record-setting pace began in earnest.
All of the possible asset amounts have been used or considered for recent spinoffs.
TSR's management has not only been managing money, investing in Spinoffs globally for the past decades, but it also advises the world's most notable funds with subscription investment research on where the value is hidden within any given approaching or potential target corporate break-up that TSR has under coverage / on forward calendar.
At $656bn, around 54% of next year's due and potential Spinoffs will spin out of the United States.
Email Alerts on Spinoffs (Past, current & future)
NEW YORK & LONDON -- With the IPO Market And M&A Transactions Slowing Down; Top Global Hedge, Mutual And Family Office Funds Are Turning to Corporate Break-Up (Spinoff) & Value Specialists, The Spinoff Report (TSR) For Their Organic Research Of Current, Past & Future Deep-Value Spinoff Opportunities .
Released to clients recently, The Spinoff Report's 60 page Full Pre & Post Valuation Spinoff research of Tyco Intl' (TYC), The ADT Corp.
Ryan Mendy, COO of TSR comments: "As with EXPE & TRIP, as an Index benchmark, we're respected by funds for our significant outperformance (+60%) of the S&P500 from our Spinoff recommendations, giving investors research edge pre-event, on the Fundamentals, the Technicals, and notably, the Insiders"
The Spinoff Report will be on a NY/Boston Roadshow 9-13(th) July, 2012 discussing up and coming Spinoffs.