Two special situations: a Spin-Off and a Sum-of-the-Parts
February 04, 2011
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RELATED TICKERS: ITT
I came across two interesting articles on special situations today, onr about an impending spin-off and one about a company that's current share price is significantly less than the value of the sum of its parts.
I know that I have mentioned ITT in the past. Here's another interesting article on the subject where the author speculates that the Company's defense business might come under significant selling pressure after it has been seperated from the fluid and motion and flow segments because the Department of Defense is cutting back on spending.
This selling pressure might enable investors to pick up shares of this well-run division at a great price, especially if it offloads a bunch of its debt on the other divisions.
ITT: Spinoff Opportunities
The second article talks about how the sum of the parts of the French conglomerate Viventi (VIVDY.PK) is worth 30% more than its current share price. This gap may narrow as the company either sells off or acquires the rest of the companies that it only has partial ownership in.
Vivendi: Well Defined Strategy, History of Significant Dividends Make for a Bargain at Current Price
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