The Abbott AbbVie split
Abbott Labs to Split Into 2 Companies
Excerpt:
Barring any regulatory surprises, Abbott Laboratories (ABT) will officially separate into two companies Jan. 1, 2013, entering a new era shying away from mega-mergers.
The suburban Chicago drug and medical product giant is splitting into a medical products business that will be called AbbVie, and trade under a new ticker symbol, ABBV, while the other company will retain the Abbott name and largely be focused on medical products including devices, diagnostics and nutritional products.Comment: Hopefully unlocks stock holder value.
10/17/12 press release: Abbott Reports Double Digit Earnings Per Share Growth in the Third Quarter
ReplyDeleteQ2)What is the status of Abbott's planned separation into two leading health care companies?A2)
In October 2011, Abbott announced plans to separate into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals. The diversified medical products company will consist of Abbott's branded generic pharmaceuticals, devices, diagnostics and nutritionals businesses, and will retain the Abbott name. The research-based pharmaceutical company, named AbbVie, will include Abbott's current portfolio of proprietary pharmaceuticals and biologics.
The transaction is intended to take the form of a tax-free distribution to Abbott shareholders of a new publicly traded stock for AbbVie. The stock distribution ratio will be determined at a future date. It is expected that the two companies will each pay a dividend that, when combined, will at least equal the current Abbott dividend at the time of separation.
We continue to expect the separation to be completed on Jan. 1, 2013.
Update on 12/3: With Abbott's Spinoff Around the Corner, Should You Buy In?:
ReplyDeleteWhile the actual outcome of Abbott’s upcoming spinoff is unknown, there are god reasons to believe that investing in Abbott now will produce some nice returns in early 2013. The eventual stocks could very easily see a 15% to 20% return in just the first month or two of 2013. Combine this upside with the tradition of providing solid dividends, and this stock has the look of one of the early winners of the new year