Recent corporate break-ups have subsequently underperformed the broader market
come and go, and this season’s is industrial break-ups. In America and Europe, once-sprawling conglomerates are being carved up into focused companies that investors hope will fare better on their own. Those banking on quick returns have mostly been disappointed.
Conglomerates thrived in the 1970s, and made a comeback after the merger frenzy of the late 1990s. They are beloved of megalomaniac bosses keen to prove they can run empires peddling anything from train carriages toscanners . But the argument that diversity lets a firm’s healthy arms prop up temporarily frail ones is, once again, losing ground in the rich world.Private-equity funds have pots of money to buy unwanted divisions.
Gauging the impact of a break-up announcement is hard. Investors price in its likelihood before a company owns up to “exploring strategic options”. Splits often follow bad results that enfeeble the management, which may in turn mean worse news down the line. Our chart, which takes the first detailed news reports of a spin-off as its starting-point, shows that of recent break-ups, only Honeywell, which filed listing documents for its car-parts and home-security arms last August, has subsequently outperformed the broader market. United Technologies has kept pace with it.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Gannett board members reelected as shareholders reject MNG nomineesGannett shareholders have voted to reject MNG Enterprises' board nominees, according to preliminary results of the vote.
Leer más »
Gannett shareholders reject hedge fund’s board candidatesThe vote, completed at Gannett’s annual meeting in McLean, amounted to a rejection of Alden’s Media News Group -- possibly a final one -- of Alden’s attempt to acquire Gannett through a hostile takeover launched in January.
Leer más »
Overstock CEO defends personal stock sale after shareholders question moveOverstock.com Inc Chief Executive Officer Patrick Byrne on Friday hit out at sha...
Leer más »
Tesla's Capital Raise Offered No Real Benefit To The Company Or Its Suffering Shareholders
Leer más »
Perspective | 150 years after the transcontinental railroad, indigenous activists continue to battle corporate overreachPerspective: 150 years after the transcontinental railroad, indigenous activists continue to battle corporate overreach
Leer más »
$1.2 trillion in stock market value lost so far from trade war sell-off with more expectedStocks plunged Monday on fears the trade war damage the global economy and crush corporate profit growth.
Leer más »
Trump's China grudge match may be spinning out of controlA president torn between his love of tariffs and booming markets faces the risk of uncontrollable escalation.
Leer más »
The 10 worst corporate logo fails of all timeHere are some truly terrible corporate logos, for your viewing pleasure.
Leer más »
42 Products With Before And After Photos That'll Make Your Head SpinTransform your life one smart Amazon purchase at a time.
Leer más »