I called Pfizer Investor Relations and I thought their response was inadequate. I see their actions as unfriendly to investors. I don't believe shareholders will be getting any stock in ZTS - the 20% that Pfizer offered through Morgan Stanley. Typically, companies will offer existing shareholders shares, but that wasn't done in the case of ZTS. Morgan Stanley probably offered that 20% to their institutional investors. It was these investors who got the premium for the 20% that should have been provided to PFE shareholders.
You need to understand the difference between an IPO (which is what PFE has done with ZTS) and a spin-off. When a company spins-off a new company, the shareholders in the parent company receive all of the shares issued in the new one. While that usually creates benefit to the shareholders, it does not generate cash for the parent company - and cash is what PFE needs. In an IPO, as in this case, shareholders in the parent company never receive shares in the new company, but the parent company receives cash and - often more important - transfers debt to the new company. Bottom line - this IPO will strengthen PFE and all shareholders will benefit through that. In addition, because PFE is retaining 80% ownership of ZTS, we may benefit through that, if ZTS shares do well. Finally, it is possible that sometime down the road PFE will distribute some or all of its 80% to PFE shareholders - but that is not a guaranteed outcome. If you want to own shares of ZTS, wait a few days for the initial enthusiasm to die down and go buy some. PFE is doing a good thing for its shareholders, and their actions are in no way "unfriendly to investors."
You own PFE. PFE owns 80% of ZTS and has over $2B additional cash from the IPO. As ZTS shares rise, PFE shares rise with it, all other things being equal. There are no plans to issue ZTS shares to PFE stockholders currently, but we still benefit as ZTS shareholders via PFE.
The answer is NO! You may still benefit from this IPO if Pfizer uses the money from the sale of ZTS stock to increase their dividends and/or buy back shares of PFE, which they have said they plan to do.
Share buybacks merely help management temporarily achieve their EPS goals to get bonuses and options which, ultimately, put those same shares back out in the market. And you, my dear PFE shareholders, are left out in the cold. It's a Wall St. version of the old shell game.