NEW YORK & LONDON--(BUSINESS WIRE)--In one week, x2 previous Spinoffs have been bid for, namely leading US beverage and communication firms, BEAM and Time Warner Cable. If you’ve ever held or ‘wished’ you had owned a stock that’s been approached or taken-over, where the stock’s then rallied a typical +20-50%, giving an instant return to investors; you’ll certainly remember that feeling of either regret that you missed it, or the brilliance that you were advised beforehand.
So can you predict a takeover? “Each year, less than 1% of global listed companies transact a corporate break-up [Spinoff]. Our research experience gives us the ability to predict and advise which companies are most likely to be taken-over or attract M&A once demerged,” comments Jim Osman, CEO of TSR.
Osman’s view is highly respected with buy side firms, as Osman himself is from money management. He was previously at notable hedge funds in Chicago and London. This relates to the analyst team his company has built, whereby over the last 6 years, TSR’s pre-event recommendations to clients on every one of the 200+ Spinoffs since have generated an impressive +64% return on average.
With the most active year ever, here are a few examples of successful Spinoffs TSR have advised on ahead of each takeover:
- Elan Corp acquired on Dec 18, 2013 by Dublin based Perrigo Co. Plc (PRGO) for $6.2bn.
- DE Master Blenders, a Spinoff from the then $10bn Sara Lee (renamed Hillshire Brands, HSH), acquired on Apr 12, 2013 by a private German holding company, Joh A Benckiser SE for $9.8bn (EUR 7.3bn).
- Ralcorp Holdings acquired on Jan 30, 2013 by ConAgra Foods, Inc. (CAG) for $6.6bn.
- Foster's Group acquired on Dec 21, 2011 by SABMiller Plc (SAB LN) for $10.2bn (AUD 9.9bn).
- Motorola Mobility Holdings acquired by Google Inc. (GOOG) on May 22, 2012 (announced on Aug 15, 2011) for $12.5bn.