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Tons of special situation news

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June 30, 2011 – Comments (1) | RELATED TICKERS: MRO , LLL , VOD

As I mentioned in a previous post, I went away on vacation for a few days with my family earlier this week.  It's absolutely amazing how many great articles about special situations investing were published during that short period of time.  I'm just catching up on all of the news, so I figured that I'd share the best of them with everyone.  Enjoy!

1) Interesting sum-of-the-parts analysis that values Liberty Capital (LCAPA) at $120/share versus its current share price of $85.

Liberty Capital Spikes; Deutsche Upgrades; Focus On Sirius Stake

http://blogs.forbes.com/ericsavitz/2011/06/30/liberty-capital-spikes-deutsche-upgrades-focus-on-sirius-stake/ 

 

2) I neat article that attempts to value the former value investing world darling and now bankrupt Seahawk Drilling.

Seahawk Drilling, value in bankruptcy? 

http://oddballstocks.blogspot.com/2011/06/seahawk-drilling-value-in-bankruptcy.html

 

3)  Marathon Oil officially splits up into two separately traded companies this week.

Marathon spinoff may attract local investors 

http://www.toledoblade.com/local/2011/06/30/Marathon-spinoff-may-attract-local-investors.html

Marathon reborn a corporate giant

http://www.toledoblade.com/business/2011/06/26/Marathon-reborn-a-corporate-giant.html 

 

4) Fortune Brands announced that after selling its golf division it will split its remaining home and securities business (FBHS) and spirits business (BEAM...what a great symbol) into two separate companies.

Fortune's Brands to Trade Separately After Spinoff 

http://www.foxbusiness.com/industries/2011/06/30/fortunes-brands-to-trade-separately-after-spin-off/

 

5)  The successful activist investor Relational Investors is pushing for L3 Communications (LLL) to sell or spin-off its underperforming businesses.

L-3 Takeover Brings 21% More Than Valuation Through Asset Sales: Real M&A 

http://www.bloomberg.com/news/2011-06-30/l-3-takeover-brings-21-more-than-valuation-through-asset-sales-real-m-a.html

 

6)  The former Dow Chemical spin-off Styron is changing its name Trinseo and its current private equity owners have filed to list its shares in the U.S. through an IPO.

Dow styrenics spin-off files papers for Trinseo offering / Intake of USD 400m targeted

http://www.plasteurope.com/news/STYRON_t219728

 

7)  Vodafone's CFO said that he sees the company eventually receiving as much as $5.5 billion in dividends annually from Verizon Wireless.

Vodafone Sees Annual Verizon Dividend of Up to $5.5 Billion 

http://www.bloomberg.com/news/2011-06-29/vodafone-sees-potential-verizon-wireless-dividend-of-up-to-5-5-billion.html

 

8)  Marriott Moves Closer To Spinning Off Timeshare Business

http://online.wsj.com/article/BT-CO-20110628-714035.html

 

9)   A company that I currently have a small position in Evolution Petroleum (EPM) announced that it is issuing new cumulative preferred stock that will have an initial yield of over 9% that I am very interested in.

Evolution Petroleum Announces Pricing of Public Offering of 8.5% Series A Preferred Stock 

http://www.prnewswire.com/news-releases/evolution-petroleum-announces-pricing-of-public-offering-of-85-series-a-preferred-stock-124674768.html

 

10)   Activist investors seem to be targeting large defense companies.

After L-3, activists drool over Textron 

http://www.reuters.com/article/2011/06/28/us-dealtalk-defense-breakups-idUSTRE75R6D520110628

 

Deej 

1 Comments – Post Your Own

#1) On July 01, 2011 at 1:01 PM, Schmacko (58.15) wrote:

I'm not as sold on the value unlocking aspect of L-3 as I was on ITT.  After all is said and done whatever is left at L-3 is still going to derive all it's money from the department of defense.  Spinning off whatever is most underperforming as a vehicle to unload debt onto said spin off would probably make the most sense to me. 

I still believe there is going to be downward pressure on defense stocks and the companes that are most leveraged to the DOD's budget, like L-3, would be the companies facing the most pressure.  I would think potential buyers of L-3 business segments would know this and would prefer to wait 6-12 months to see if they can get a better deal. 

I like the BEAM spinoff heads up.  Thanks for spotlighting these situations.

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