Nothing will happen until calendar year 2005, and it may not happen early in the year either. These things take a long time because of corporate reorganization and tax issues. This isn't simply a spin-off because there is nothing to spin until TMG creates separate companies. They also may need a tax opinion from the IRS which takes months from the time they request it, and they surely haven't requested it yet. We will get a timetable, I'm sure, on the next quarterly call in mid-November. Hopefully they will begin reporting pro forma numbers soon, including a target initial distribution for the MLP piece, so that we will have an idea what the new structure will look like.
Board is dead.....although it never was very active until news of the current situation surfaced.
No idea on my part when the MLP transaction will take place. If there are no tax benefits to getting it done this year, I agree it will take place in Q1 of '05.
Your post earlier regarding the MLP...the potential value etc was helpful. I know little about the valuation/set-up etc of these kinds of things although I do have one other in the sector, Kaneb Services which has appreciated nicely and continues to spin off a nice cash flow. Interest rates do appear to impact the share price, however.
Well, the sooner they get it done, the sooner they can use the MLP as a acquisition vehicle. Should be an interesting company, pretty good assets and small capital base. Hard to go wrong on these small MLP's as almost any acquisition made at even the pedestrian 7x-8x ebitda multiple winds up being fabulously accretive, simply because the MLP is in the low splits and the base of units on which to spread the accretion is small. On the other hand, the GP is more attractive 2 or 3 years down he road, when it has entered the high splits and the base of units has grown tremendously....so, buy a little of both, get the income and capital appreciation up front from the LP units, and the capital appreciation and hopefully dividends out further on the GP....