Doesn't a spinoff of another company usually lead to a drop of the parent company's stock? Especially when the unit is producing a positive cash flow. (i.e. Wendy's spinoff of Tim Horton's)I like CPB as a long-term investment (world expansion, upside stock potential, etc.), but if the spinoff will drop the price, then I'll wait until that happens before buying in.What do you think will happen with CPB's stock if someone buys the Godiva unit?Thanks.bg
This is not a spinoff. Altria spun off Kraft. CPB is selling Godiva. CPB will go up if they get a good price.
correct. CPB specifically said it was selling Godiva.If it was spun, Godiva would be its own entity and CPB shareholders would get a piece of the company. This is not the case.CPB will come out VERY nicely on this sale and it will be sold. Question is who?CPB will quickly jump beyond $40 IF GODIVA IS SOLD AT PREMIUM. That is, anything above the asking $1 BIL. CSG, HSY, Mars or even private equity groups are potential buyers.