Motley Fool: My Favourite Spin-Offs

We Brits call them demergers, but Americans call them spin-offs. But whatever you call them, breaking up a company into smaller chunks is quite fashionable right now.

At first sight it is unclear as to why breaking up a company into smaller bits can create value. Some cynics say it is just a ploy by investment bankers to make more money for themselves. And they may be right. It seems that when shares are rising merchant bankers like to encourage their clients to issue shares to acquire businesses. But when markets are either flat or falling, bankers, who earn their fees from corporate activity, will instead turn to demergers!…

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