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Sep 24, 2015

The activist push for spin-offs

Activists assert that trapped value in real property can be maximized through tax-efficient separation

With activists now robustly involved in boardroom dynamics, engaged shareholders are pushing to realize untapped value

A current trend in activism is to press for a spin-off of a business line to exploit its potential value as a separately traded company. And in the right circumstances a spin-off certainly can release latent value by removing obstacles to valuation and growth, particularly where the distinct businesses are potentially more valuable separately than as one entity. Carl Icahn pushed Manitowoc to spin off its core Foodservice business from its cranes division, asserting that ‘disparate, unrelated

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