Pfizer's (PFE) c.$12bn Zoetis, a Real Spinoff?
NEW YORK and LONDON, January 31, 2013 /PRNewswire/ --
"This is an IPO, not a Spinoff… Well not yet!" according to Ryan Mendy, COO of TSR, the UK based, leading global Spinoff and special situations research firm.
TSR's specialist analyst team have been looking at Pfizer's (PFE) various break-up potentials closely since 2010. Zoetis (ZTS), PFE's Animal Health business, is one of 120+ break-ups onTSR's 2013 calendar, but they believe the best is to come for investors.
"Zoetis is due to be priced today, valued at c.$12bn", comments Mendy. "Ourresearch sees a better investment angle on PFE if you want ZTS stock? Large investors are apparently oversubscribed to the IPO. There's still over two thirds [80%] of the company being held back by PFE management. Will they be distributed tax-free? Much better returns are generated fromSpinoffs than IPOs".
And the TSR team have a real edge, they returned +23% in FY2012 to funds using their research and they have a market leading history of both advising and delivering institutional clients solid benchmark outperforming returns from their fundamental analysis, weekly idea generation and recommendations on what future Spinoffs and Distressed Equity Situations will perform best(?). You can click here to see TSR's 5 year track record vs. major benchmarks.
PFE, valued at $197bn, are merely selling (raising money) for 20% of ZTS and holding back the rest to see how it performs, thus with no current tax-free distribution of the other 80% of stock back to current PFE shareholders, this is a pure IPO, not a Spinoff.
It appears Compuware (CPWR) is aiming to carry out a similar process now, just like Sunoco (SUN) did with its coke-making business SunCoke Energy (SXC) and Dean Foods (DF) is planning with its consumer segment, WhiteWave (WWAV).
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SOURCE The Spinoff Report Ltd