Has anyone seen an intelligent writeup "guess-timate" of what the three divisions are expected to be priced at? We have all seen estimated breakup values of $60 - $100 for a good year now, but I'm talking about more recent analytics, based on current market conditions, etc. I say this particularly in light of the fact that the stock is now trading well below what it was trading at PRIOR to the announcment.
Is my humble thinking right?
At present itt is trading at 40.
defense is 58%,fluid is 31%,and Motion is 11%.
To make 3 units you would get the same amount of stocks you own for this price.
Defense 23.20$ a share
Fluid 12.40$ a share
Motion 4.40$ a share
I hope i am wrong may be some body can educate me Please m
You will not end up with the same number of shares in each of the post break-up stocks as you have now. You will end up with the same overall $$ amount on the day of the break-up as you would have had holding the stock as it is today. The "market" will then decide what each individual holding is worth . . .
I think you leave out several important factors, each of those will trade at different PEs than what we see now and you have not taken into acct the debt each will take on and how that will be distributed on the books. but it is a very simplistic way to look at it. Normally all the pieces will hopefully add up to more than the whole which is one of the original premises for doing this to unlock investor value.
Michael Price has the value at an average of $67. Others have it $73. don't be surprised to see the water and defense businesses get bought out next year. they will be easy pic ken's with their small market caps. motion and flow will probably be the only one left by the end of 2012. my predictions at least
Didn't quite answer my question since no hard and fast numbers were mentioned, but I just found this link: