Will the spin off of PFE's Animal Health business be good or bad for PFE stockholders?
it suppose to be good.
it could be good or bad.
Pfizer should get about $2B cash from the IPO and will own 80% of ZTS, so if the company does as well on its own as it has under PFE it should be good for PFE shareholders.
Its good, by keeping ZTS 80% equity, pfe can still record 80% of profits or loss from the unit as per accounting rules. Once pfe drops the equity below 80% it cannot record it on its books. So its a win win!
excuse a little bit of nit-picking, but pfe will actually record 100% of zts earnings (consolidation of subsidiary) and then lower on the p&l will deduct "minority interests".
same result tho.