Spin-offs hit record
Article Abstract:
It has become increasingly common for conglomerates to spin off larger subsidiaries, according to a report in JP Morgan's quarterly mergers and acquisitions review. It appears that the parent company's share price benefits most in the first two years following the spin-off, with stocks in the subsidiary rising to their highest levels in the third year. It was established that there are good survival rates for both the parent and the subsidiary following a spin-off.
Publication Name: Acquisitions Monthly
Subject: Business, international
ISSN: 0952-3618
Year: 1999
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Divest or be damned
Article Abstract:
The main methods available to European corporations in the 1990s seeking to divest a subsidiary are flotation, trade sale, demerger or management buyout. Trade sales, of which there have been 7,500 in Europe so far in 1999, are the most popular form of divestiture. While the auction process is straightforward, it is worthless if a buyout house is not involved. An analysis of corporate restructuring in Europe is presented.
Publication Name: Acquisitions Monthly
Subject: Business, international
ISSN: 0952-3618
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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