The exchange offer is designed to permit Pfizer shareholders to exchange their shares of Pfizer common stock for shares of Zoetis common stock at a 7% discount, subject to an upper limit of 0.9898 shares of Zoetis common stock per share of Pfizer common stock. If the upper limit is not in effect, for each $100.00 of shares of Pfizer common stock accepted in the exchange offer, tendering shareholders would receive approximately $107.52 of Zoetis common stock. These values will be determined by the simple arithmetic average of the daily volume-weighted average price of Pfizer common stock and Zoetis common stock on the NYSE during the three consecutive trading days ending on and including the expiration date of the exchange offer, which are expected to be June 17, June 18 and June 19, 2013. The final exchange ratio, reflecting the number of shares of Zoetis common stock that tendering shareholders will receive for each share of Pfizer common stock accepted in the exchange offer, will be announced by press release by 4:30 p.m., New York City time, on June 19, 2013,
A quick read of the top several lines of you post seems to indicate that you understand the situation deeply enough to (easily) explain it to someone else. Therefore, you do not really seem to require an explanation of the spin off.
Have a great day! :-)
Your quick read indicates that you should read more slowly. This is NOT a spin-off. In a spin-off, the shareholder retains the parent company shares and receives additional shares in the new company. In this case, shareholders will EXCHANGE their PFE shares for ZTS shares. Big difference. It's a PFE share buyback, using ZTS shares to pay for the purchase of PFE shares.
.....I noticed that the ONLY place where a question mark (????) appears, in your message, was the subject line.
EVERY OTHER sentence or complete thought of you post ends in a period (......) .
If you don't really understand "the deal", then how could your message be lacking a ????? somewhere in the main body of your message??? (see how that works?)
Therefore, that also indicates that you have full grasp of "the deal".
Which would indicate that you are here (asking rhetorical questions) on behalf of some "shenanigans"..........
here's an excerpt from a different story providing add'l info:
The exchange offer is anticipated to be tax-free for participating Pfizer shareholders in the United States, except with respect to cash received in lieu of a fractional share. The completion of the full separation of Zoetis is expected to be accretive to Pfizer's earnings per share beginning in 2014. Pfizer also announced today that, in connection with the planned split-off, it has received a waiver of the 180-day lock-up from the joint book running managers of the Zoetis IPO.
5 years ago PG sold folgers coffee to sjm. PG holders could exchange their shares for sjm shares tax free with a 5% premium. If you want a dividend stock hold pfe. if you want a "growing company take the zts. If you are not sure split the difference. You will not have to convert any or all of your stock. That is what I'm doing.