4 in 10 Spinoffs Predicted to See M&A – Global Specialist Predicts Takeovers Alent and Baxalta – The Edge Group
PR Newswire
NEW YORK, Aug. 4, 2015
NEW YORK, Aug. 4, 2015 /PRNewswire/ — Each sector from a new study reveals opportunities for event-driven investors. Over the past two decades, 4 out of 10 Healthcare Spinoffs were taken over within two years of separating from their ‘larger’ ex-parent company according to The Edge Group, a specialist advisor of intelligence to its client base of activist and global value funds, predicting what international Spinoffs and fundamental misunderstood companies can be evidently taken over or restructured next.
Today, with Shire Plc. bidding a +36% premium or $45 a share for Baxalta Inc. just 35 days after it officially spun-off from parent, Baxter – it marks out the second consecutive month that one of The Edge’s recommended global companies has seen M&A, generating significant returns. As featured in Forbes July 2, 2015, The Edge purely focused its pre-Spinoff analysis on Baxalta’s competitive opportunities and attractiveness post break.
Last month saw The Edge’s previous top recommendation, London based spinoff, Alent be bid for by Platform Specialty Products Group, which was intriguingly 20% owed by renowned activist investor, Bill Ackman of Pershing Square.
Having spun-off two years ago from the FTSE listed, Cookson Group, it delivered a lacklustre share price performance under the previous CEO. “Alent was 1 of the 5 stocks featured in Part 1 of our Top Spinoffs Ripe for M&A report we released in Q1 this year. We ironed out all the objections held by potential investors looking for a quality European investment. With new management from Rolls-Royce, core clients including Apple Inc. and Samsung, and Alent having over a 50% market share; we roadshowed the misunderstood-value potential of Alent to our US & European institutional clients delivering a 45% return in 5 months,” comments Ryan Mendy, COO of The Edge.
Part 2 of The Edge’s “Top Spinoffs ripe for M&A” research note featuring their next 5 target companies is being released shortly. To get your copy or contact them, go to www.edgecgroup.com.
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SOURCE The Edge Consulting Group
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