I currently own some PFE shares, and I have a question about the IPO of the animal health division. Has PFE stated how they will deal with current shareholders when they sell shares to Zoetis? Will current shareholders receive Zoetis shares in proportion to their PFE holdings? I have also read where the company may allow a shareholder to swap PFE shares for the new Zoetis shares. Has the company come out with any specifics, or is this all speculation? Thanks for any and all serious responses.
PFE will offer 20% of Zoetis at about $22 per share, with trading to begin on February 1. PFE shareholders will receive no shares in ZTS immediately, but a full spin-off to shareholders of the remaining 80% PFE owns may occur in the future. Meanwhile, PFE shareholders will benefit from the approximately $2B in cash raised by the IPO and any appreciation in ZTS's shares.
Thanks for the info. I did some more research, and what I found agrees with what you posted. I also read where PFE may do an ABT like split at some point where they break into two. Apparently some analysts believe PFE's parts have more value than the valuation given to the whole. I also read an article where PFE is rumored to be considering doing a deal with an Indian drug company that they do injectable business with. This reportedly would give them more of a generic presence.
Unless the greater plan is for PFE to use the proceeds to buyback PFE shares, thereby artificially raising EPS so they can achieve their internal management goals, thereby bonusing and optioning themselves to the hilt. Then the ordinary shareholder will be the ultimate dupe!