Old Republic International Corp. Message Board
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Spin off
Does any one know the particulars of the
up coming spin off.
They say that it will be a "taxable" event.
Not sure how that is applied.
Will this spin off be a replacement for the
regular dividend,due shortly.
All knowledgeable replies welcomed.
TIA-
something wrong here, why announce in trading session?
- 1 Reply to boeing2
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Probably to avoid chances of insiders, including spin-off and debt investors, from front-running. More cynically, to allow their friends to dump stock at the end of the day; but I don't think they run that kind of shop over at ORI. They should have done it over the weekend to allow everyone a fair shake; in that regard, I think they blew it.
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This should have nothing to do with the regular dividend
Also I'd think the taxable amount would be based on the value of the stock being spun off
Just an educated guess....- 2 Replies to st_luey
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I don't know how they determine the taxable amount. I would guess that it will be low. I can't think the new stock is worth much.
It appears that Wall Street is saying the 2 companies are going to be worth a combined amount in the 9.50s. I think that's way too low. -
It definitely will not affect the regular dividend. It was already voted on by the BOD. It's a done deal. But I have no knowledge on the details of the spinoff or for whom it's a taxable event.
Once ORI sheds this division, what remains had an operating profit of .88 last year. And I expect it to be higher in 2012. I think the stock should head back to 12. In recent years the dividend increase has been .01 per share. Without that lead weight, the dividend increases could start being greater in 2013. It would be nice to have more details.
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