If parent company A decides to spin-off its subsidiary company B, what happens to the stock price of company A?
Assuming that the total asset of company A (w/o subsidiary company B) is valued at $8, and the asset of company B is valued at $2, if company B is spun-off, does that mean that the stock price of company A will be theoretically $8, or is it likely to be lower or even higher? (i.e. $7 or $9)
Also, are shareholders of company A entitled to some shares of company B, or at least have the first chance at buying the stocks of company B?
Submitted January 14, 2018 at 07:07AM by Manticorea http://ift.tt/2Dv4ZlS
