IPOs are out of fashion. Here’s what companies are doing instead.
After Kellogg’s separation into two companies, Intel and BlackBerry are planning their own deals. While the current deal landscape on Wall Street remains low on M&A, initial public offerings (IPOs), and other transactions, corporate spinoffs are chugging along.
With companies under pressure to focus on their core business, a mini-flurry of spinoff stock debuts and new proposals have emerged in the past week.
“Spinoffs today are just more visible, given the paucity of IPOs,” said Jay Ritter, Cordell Eminent Scholar at the University of Florida who tracks the new issues market.
Read more insights from Ritter in this story from Morningstar.